The fight of Bitcoin (CRYPTO: BTC) for surpassing the $100,000 barrier is due to profit taking, derivatives data and historical trends, analysts explain to Benzinga.
Bitcoin is currently trading at $94,870, down 0.4% on the day, according to data from CoinGecko.
Avinash Shekharco-founder and CEO of Pi42told Benzinga that Bitcoin’s pullback reflects a consolidation phase rather than weakness.
He highlighted strong demand from derivatives markets, with traders paying a 17% annualized premium for leveraged BTC positions.
“Bitcoin options markets are also showing confidence as options are trading at an 8% discount, indicating a reduction in hedging demand,” Shekhar said.
It added that funding rates for perpetual contracts remain neutral at 1.4%, supporting a balanced leverage environment.
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James Toledanodirector of operations Unity Walletattributes Bitcoin’s fall to profit-taking after its rise to $25,000 in the last month.
He noted that the presence of put options between $98,000 and $99,000 has generated resistance levels.
“Profit-taking is likely to have put downward pressure on the price,” Toledano explained to Benzinga, warning that Bitcoin’s historical patterns show significant corrections after rapid ascents.
He made reference to previous cycles, such as those of 2017 and 2021, where strong rises in Bitcoin were followed by declines of up to 70%.
Arthur Azizovgeneral director of B2BINPAYnoted that Bitcoin has been trading in a tight range of $91,000 to $99,000, with the $100,000 barrier acting as a psychological barrier.
Speaking with Benzinga, Azizov predicted a possible pullback to $82,000, but noted that interest in the market remains strong, driven by the Altcoin season and significant inflows from institutional and retail investors.
According to CoinMarketCap’s Alt Season Index, the market is in alt season territory, with a score of 83.
The technical analysts of Fairlead Strategies They maintain a neutral short-term outlook for Bitcoin, citing indicators such as the daily MACD and DeMARK signals pointing to consolidation.
They identified $80,400 as the initial support level and $100,000 as key resistance. However, long-term momentum remains strong, supporting a bullish outlook beyond the current consolidation phase.
“All signs point to Bitcoin being in its consolidation phase and not a weakness phase,” Shekhar added.
Toledano echoed this sentiment, warning that although corrections are common following rapid gains, they do not necessarily signal the end of Bitcoin’s bullish rally.
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