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Bitcoin (BTC) has been on an impressive rally, inching closer to the much-anticipated $100,000 mark. However, analysts warn that the $98,000 level could pose a significant resistance, potentially delaying the breakthrough. So, what makes this price point such a crucial barrier? Let’s break it down.
Key Resistance at $98,000: What Analysts Are Saying
Several technical indicators suggest that Bitcoin may face strong resistance at $98,000, preventing an immediate surge past the six-figure milestone. Market analysts highlight the following reasons:
- Psychological Resistance: Many traders set sell orders just before major milestones like $100K, fearing a potential pullback.
- On-Chain Data: Large wallet addresses have been showing increased selling activity near this zone, indicating profit-taking.
- Technical Indicators: The Relative Strength Index (RSI) and moving averages suggest overbought conditions, signaling a potential correction.
- Liquidity and Whales: Bitcoin whales often use major resistance levels to offload holdings, causing temporary price stagnation.
Could Bitcoin Break $98K and Hit $100K?
While resistance at $98K is strong, several factors could fuel Bitcoin’s rally past this level:
Institutional Demand: Growing interest from ETFs and hedge funds could provide enough buying pressure to push BTC beyond resistance.
FOMO Effect: If Bitcoin holds steady near $98K, fear of missing out (FOMO) could trigger a buying spree.
Macroeconomic Trends: Factors like Fed rate cuts, inflation, and global adoption of BTC as a store of value could accelerate the breakout.
- If Bitcoin breaks $98K, it could trigger a parabolic move past $100K, fueled by momentum traders and institutional buyers.
- A rejection at $98K might lead to a short-term correction, with support around $92K–$95K before another attempt at breaking higher.
Investors should keep an eye on trading volumes, whale activity, and macroeconomic trends to navigate Bitcoin’s volatile journey to $100,000.
