Analysts say that although Bitcoin is holding the $105,000 level, it is on “fragile” grounds for the following reasons:
Market Sentiment Uncertain: The Fear & Greed Index is at 55, indicating a cautious market. Sentiment has balanced the markets in a wait – and – see mode, and investors are looking for a macro trigger or confirmation of trend.
Near Key Support Levels: Bitcoin is currently trading in a “delicate” range around key support levels. Nervous investors could easily panic and sell off their holdings in response to a single bearish news event.
Technical Resistance: Bitcoin has failed to break above the $106,800 resistance level, which aligns with the macro 1.703 Fibonacci extension. Additionally, after a 50% rally from cycle lows without a significant pullback, rejection at this level was anticipated.
Impact of Macroeconomic Data: Upcoming macroeconomic data, such as the CPI and PPI, could affect Bitcoin’s volatility. Any upside surprise in inflation data could weigh on risk assets broadly, including crypto.
However, Bitcoin also has some factors supporting its price at the $105,000 level:
Institutional Adoption: The “Bitcoin for corporations” narrative has bolstered Bitcoin’s price. More companies, such as Trump Media and GameStop, have established corporate Bitcoin treasuries, indicating growing institutional confidence in Bitcoin.
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