Bitcoin Price Battles for $105,000 as Bull Run Debate Heats Up
The Bitcoin (BTC) price has been caught in a tug-of-war around the $105,000 mark, sparking debate among market participants about the trajectory of the bull run. After a 4% dip at the Wall Street open on May 19, BTC staged a rebound, pushing above $104,500, but the volatility has fueled uncertainty about what’s next for BTC/USD.
Optimism and Caution: Diverging Perspectives on Bitcoin‘s Future
Some analysts, like Rekt Capital, remain optimistic about Bitcoin‘s prospects, believing the recent surge has positioned BTC for a successful retest of higher levels. He highlighted the importance of maintaining support around $104,400. Meanwhile, trader Daan Crypto Trades focused on the $102,000 and $106,000 price levels as key indicators of future direction, emphasizing that a clean break below either of these levels could signal a shift in momentum.
On-Chain Data Points to Potential Resistance
On-chain analytics firm Glassnode also weighed in, noting that Bitcoin‘s price surge stalled just below $106,600, a level where a significant number of Bitcoin holders have their cost basis. This supply cluster, originating from December 16, remains strong, suggesting potential resistance at this level. The fact that these holders haven’t redistributed or averaged down highlights the significance of this price point in the short term.
Bearish Warning: Is the Bull Run Ending?
Not all analysts share the same optimistic outlook. Trader Roman expressed concern over the recent price action, pointing to bearish divergences, low volume, and an overbought stochastic relative strength index (RSI) indicator. He concluded that “Too many bearish signs to ignore,” suggesting that the bull run might be nearing its end.
The Volatility Continues: A Wait-and-See Approach
The current price action underscores the ongoing volatility in the Bitcoin market. While some anticipate a further push towards new all-time highs, others believe a correction may be on the horizon. As the market navigates this period of uncertainty, traders and investors are advised to proceed with caution and conduct their own research before making any investment decisions.
Remember that this article provides information and analysis but does not constitute investment advice. The cryptocurrency market is inherently risky, and past performance is not indicative of future results.
