The post Bitcoin Tests Resistance Near $100,000 as Analysts Warn of Potential Momentum Weakness appeared on BitcoinEthereumNews.com.

Bitcoin has once again captured the attention of the crypto market, reaching an impressive intraday high of $98,481 as bulls aim for a monumental breakout above $100,000. Despite this bullish sentiment, experts are warning of potential volatility as diminishing trading volumes could hinder the momentum necessary for sustained price increases. According to DonAlt, a notable trader, while Bitcoin’s recent performance has been commendable, it has entered a precarious phase where a significant breakout is required to maintain optimism. This article explores Bitcoin’s recent price fluctuations, expert analysis on market trends, and potential challenges ahead. Stay informed on the latest in crypto. Bitcoin Reaches New Heights Amid Market Caution The cryptocurrency market witnessed Bitcoin’s recent surge as it peaked at $98,481, igniting renewed interest from investors and traders alike. Following a sharp drop to the $91,000 level at the end of December, Bitcoin’s rebound reflects a strong buying interest. However, experts caution that maintaining this upward trajectory is critical. The current setup indicates that a strong breach of the $100,000 level is essential, as failure could lead to further corrections. Analyzing Trading Volume and Market Sentiment Market analysts are closely monitoring trading volumes, which have shown signs of weakening recently. Low volume during upward price movements could signal a lack of conviction among buyers, raising the stakes for Bitcoin bulls. Analysts argue that higher volumes are necessary to sustain momentum and avoid a potential downward trend. Additionally, the impact of recent macroeconomic developments, such as the U.S. Federal Reserve’s hawkish stance, adds further complexity to market dynamics. Bearish Indicators and Recovery Expectations Despite the current bullish trend, Bitcoin’s monthly chart shows a shooting star candlestick pattern, historically associated with price corrections. Such patterns indicate a potential shift in investor sentiment and can lead to increased selling pressure if not addressed. Nevertheless,…

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Filed under: News - @ January 5, 2025 11:27 am