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Bitcoin (BTC), the world's leading cryptocurrency, has found itself at a crossroads once again. The $95,000 level is now viewed as the immediate hurdle before the flagship cryptocurrency can potentially prevent bulls from reclaiming the psychologically significant six-figure mark.
According to widely followed crypto analyst Dave the Wave, the cryptocurrency is currently in a recovery phase that could determine the trajectory of the broader market cycle.
In a Sunday update, the analyst noted that the $100,000 level is the definitive barrier for bulls to reclaim.
Path to six figures
Bitcoin is currently trading around $91,360, up approximately 0.85% on the day. The price action indicates that a potential reversal could be in the offing. For now, however, Bitcoin is still undergoing a multi-month correction from its Oct. 10 peak near $127,000.
There are several key technical developments that are currently in play. First of all, Bitcoin appears to have breached a steep descending trendline (dotted white line) that has constrained the price action of the leading cryptocurrency. This could signal that bearish momentum is waning.
Secondly, the chart illustrates a "higher low" structure forming around the $80,000 mark. This could create a base for the current impulse. However, the price remains below the long-term ascending logarithmic trendline (yellow).
Modest odds
In the meantime, data from Polymarket shows an 82% probability that Bitcoin will hit $100,000 this year. However, the market is not yet pricing in a runaway "supercycle." The odds of BTC reaching $120,000 currently stand at 50%.
Tomiwabold Olajide
Alex Dovbnya
Arman Shirinyan
Caroline Amosun