Bitcoin’s Resurgence: Trading Above $95k
As of now, Bitcoin is making headlines by trading above the critical $95,000 level, marking an impressive increase of over three percent in the past 24 hours. This upward movement is accompanied by signs of a short-term bullish divergence, as the cryptocurrency strives to reclaim an essential Fibonacci level. Adding to the optimism, analysts have observed a new bullish cross appearing on the Bitcoin indicator, suggesting potential further gains.
Understanding the Mean Dollar Invested Age (MDIA)
According to data from Santiment, Bitcoin’s Mean Dollar Invested Age (MDIA)—a metric that measures the average age of coins held in wallets—has witnessed a significant drop since mid-October 2023. This downward trend is indicative of a bullish market sentiment, as it reflects that coins which were previously dormant are now being actively circulated. The average age of Bitcoin has decreased dramatically from 637 days to 466 days, a 27% reduction, with a notable 9% decrease occurring in just the past three weeks. This continued decline in MDIA suggests a prevailing bull phase in the market.
Looking at the Bigger Picture
Analyst Josh from Crypto World provides a broader perspective, emphasizing that Bitcoin’s overall outlook remains bullish. Despite some short-term setbacks, the cryptocurrency is demonstrating strong potential for a long-term upward trend. However, resistance looms at the 16.8 Fibonacci extension, which lies between $100,000 and $102,000. Currently, Bitcoin is endeavoring to recapture levels around $94,000 to $95,000. After a brief dip below this range, it is now making efforts to climb back above. Should Bitcoin manage to close above $95,000 in the coming days, this could signify a positive short-term movement.
Next Resistance Levels to Watch
Bitcoin’s journey beyond $95,000 could encounter resistance zones around $100,000 and $102,000. Successfully overcoming these barriers might propel Bitcoin to new heights, potentially reaching $113,000. Conversely, should a retracement occur, support levels around $89,000 could provide a safety net.
Short-Term Bearish Divergence
In the immediate term, Bitcoin is displaying a bearish divergence on the 12-hour chart. This pattern suggests the possibility of volatile price action in the upcoming days. While this could lead to minor pullbacks or sideways movements, it is not deemed a significant threat. Historically, similar formations have often preceded breakouts following a phase of consolidation.
Breaking the $100,000 Level
If Bitcoin manages to surpass the $100,000 mark, it could trigger a substantial short squeeze, propelling the price significantly higher. This scenario would mirror the events when Bitcoin breached the $20,000 threshold in the previous bull cycle, indicating the potential for a remarkable upward trajectory.
