Why is Bitcoin Price not Crashing Today?

Bitcoin is currently trading above the crucial $95k level and is up by more than three percent in the last 24 hours. The largest cryptocurrency is showing signs of a short-term bullish divergence, as it tries to regain a key Fibonacci level. This is happening alongside a new bullish cross on the Bitcoin indicator.

According to Santiment, Bitcoin’s Mean Dollar Invested Age (MDIA), which tracks the average age of coins in wallets, has dropped significantly since mid-October 2023, signaling a bullish trend. This decline shows that coins previously sitting idle in wallets are now being circulated. The average age of Bitcoin has fallen from 637 days to 466 days, a 27% drop, with a 9% decrease in just the past three weeks. As long as the MDIA continues to drop, it suggests that the market is in a bull phase.

Looking at the Bigger Picture

Analyst Josh of Crypto World said that Bitcoin is still looking bullish overall, showing strong signs of a potential long-term bull run despite some short-term pullbacks. However, there’s still resistance at the 16.8 Fibonacci extension, which is around $100,000 to $102,000.

Bitcoin is trying to reclaim levels around $94,000 to $95,000. After briefly falling below this level, it’s now attempting to break back above. A close above $95,000 in the next few days could signal a positive short-term move.

Next Resistance Levels to Watch

If Bitcoin manages to break past $95,000, the next resistance areas are around $100,000 and $102,000. A confirmed breakout above these levels could push Bitcoin higher, possibly reaching $113,000. On the downside, we could see support around $89,000 if there’s a pullback.

Short-Term Bearish Divergence

In the shorter term, on the 12-hour chart, Bitcoin is still showing a bearish divergence. This means there might be some choppy price action in the next few days. While this could lead to a slight pullback or sideways movement, it’s not necessarily a major concern. In the past, similar patterns have led to breakouts after a period of consolidation.

Breaking the $100,000 Level

If Bitcoin breaks above $100,000, it could trigger a major short squeeze, pushing the price significantly higher. This would be similar to what happened when Bitcoin broke past the $20,000 mark in the previous bull cycle.