Bitcoin's $100,000 Barrier: Key Resistance Level or Adjustment Catalyst?

The impressive price increase of Bitcoin (BTC) towards the psychological level of $100,000 is facing a significant challenge, as a technical analyst warns of a potential correction unless this important resistance level is broken. A deeper pullback could push the cryptocurrency down to as low as $85,600, shaking market confidence. TD Sequential Warning On November 12, 2024, a technical analyst identified as Ali highlighted bearish signals on Bitcoin's 12-hour chart by using the TD Sequential indicator. This tool, known for its ability to identify trend reversals, indicates that Bitcoin may be heading towards a retreat.

“BTC needs to close above $100,535 to invalidate the sell signal,” Ali declared on X, warning over 89,000 followers. Failure to surpass this level could lead to a pullback to $91,583 or, in the worst case, $85,610. TD Sequential, developed by Tom DeMark, evaluates price trends in two phases: Setup and Countdown. Setup identifies the moment when price volatility exceeds the previous high or low, indicating the continuation of the trend. Countdown then confirms the exhaustion of the trend and signals the possibility of a reversal. Applying this tool to Bitcoin, Ali demonstrates weakening momentum as BTC approaches the $100,000 mark. Current market volatility As of November 25, 2024, Bitcoin has been trading in a narrow range between $97,076 and $97,547, signaling hesitation among traders. Oscillators such as the Relative Strength Index (RSI) and Stochastic indicate neutral momentum but also warn of potential overbought conditions. Meanwhile, trading volume has decreased, reflecting more cautious sentiment. Long-term moving averages, including Exponential Moving Average (EMA) and Simple Moving Average (SMA), still maintain price growth prospects. However, momentum is gradually diminishing near the $100,000 mark, amplifying the significance of this resistance level. The level of importance to pay attention to Resistance: Closing above $100,535 could negate the TD Sequential sell signal and spark fresh buying interest. Such a move could push Bitcoin into uncharted territory, further fueling optimism.Support: Analysts have identified $95,000 and $93,000 as initial support zones. If these areas fail, deeper retracements to $91,583 and $85,610, as predicted by Ali, could come into effect. Price Increase and Decrease Scenarios A break above $100,000 will strengthen Bitcoin's bullish trajectory, attract outsiders, and strengthen long-term sentiment. Such a rally could set the stage for a sustained rally, potentially targeting higher psychological milestones. Conversely, failure to break through $100,000 may confirm the bearish forecast, the beginning of a correction. A drop below $93,000 could further shake confidence, with the ultra-pessimistic level of $85,610 marking a significant retracement in the ongoing bull market. Navigating uncertainty Traders must face a delicate balance as Bitcoin hovers near a crucial level. On one hand, this cryptocurrency still maintains strong price-increasing fundamentals, driven by institutional interest and macroeconomic factors. On the other hand, weakening momentum and technical signals indicate caution. The $100,000 level has emerged as a psychological barrier and a technical pivot, turning it into a battleground for Bitcoin's next big move. Traders are advised to closely monitor closing prices, volume dynamics, and resistance tests. In a market driven by psychology and technical signals, the success or failure of Bitcoin to surpass $100,000 may shape its short-term trajectory. Until clarity emerges, caution remains paramount.