Bitcoin’s Price Game: Will $98K Be the Make-or-Break?

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Oh, Bitcoin (BTC), you fickle friend! On Friday, we saw a significant loss as prices dipped below $102K, ending a tumultuous trading week. 📉 As the global financial markets took a hit, Bitcoin didn’t exactly shine, leaving us wondering about the future of the bull market.

Is $98K the Magic Number for Bitcoin?

January was a month of ups and downs for our favorite cryptocurrency. Despite an overall positive performance, Bitcoin hasn’t quite confirmed the continuation of the bull run, with its all-time high price increasing by a mere 0.6%. 😒

But fear not, dear investors! Blockchain analytics firm Glassnode has shed some light on a critical price level that could be the key to Bitcoin’s future. In a recent post, Glassnode reveals that a substantial volume of BTC has been traded between $94K and $101K over the past 45 days. 💡

This means there’s a dense supply cluster forming around the $98K price zone, indicating that many investors are snapping up BTC near this price point. Historically, price areas with high accumulation activity have served as strong support during market downturns and acted as resistance during price rallies. 🚀

 

If Bitcoin can consolidate above $98K for a while, this price zone could become a solid foundation for further rallies in the current bullish structure. But beware! A fall below this level could turn it into a strong resistance zone, as investors may try to sell to cut their losses. 😱

So, what’s next for Bitcoin? If the bulls can hold above $98K with enough buying power, we could see a return to the $106K price region, a strong psychological resistance zone. However, if sellers dominate at the $98K level, Bitcoin could face further declines, potentially retesting the $92K mark. 🔄

BTC Sees Massive Exchange Outflows

In other news, the Bitcoin market experienced $442 million in exchange outflows over the past week. According to data from IntoTheBlock, exchange inflows stood at $372 million, resulting in a net outflow of $70 million. 📈

Higher exchange outflows than inflows are usually a bullish sign, suggesting that investors are less inclined to sell and are moving their assets to private wallets in anticipation of a price gain. As of now, BTC trades at $102,269, down 1.94% in the past day. The daily trading volume has also decreased by 12.58%, currently valued at $44.44 billion. 📊

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2025-02-01 21:13