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According to the recent price movement of Bitcoin, getting to $100,000 might not be as difficult as some people think. Bitcoin is in a position where it can rise with little immediate resistance because bearish liquidity on the derivatives market has all but disappeared. The main element permitting Bitcoin's possible ascent may be this absence of downward pressure.
The existence of excessive short positions on the derivatives market was one of the main causes of Bitcoin's previous inability to sustain upward momentum. Because of the wall of liquidity created by these shorts, it was challenging for Bitcoin to overcome important resistance levels. But since there is now almost no bearish liquidity, there is no reason why Bitcoin cannot keep rising.
Bulls benefit from this situation since there is not much aggressive selling to keep the price down. Bearish traders might be reluctant to return to the market in the absence of a sizable short squeeze opportunity, which would further lessen resistance to Bitcoin's ascent.
Although there are indications of bullish dominance on the derivatives market, the spot market is still erratic. Any sustained rally still depends heavily on actual demand for Bitcoin.
Arman ShirinyanBitcoin may take longer than anticipated to reach $100,000 if spot buyers are unable to maintain momentum. Furthermore, the course of Bitcoin will be greatly influenced by institutional inflows, regulatory changes and macroeconomic conditions. The rally may quicken if favorable catalysts appear, such as the approval of ETFs, a rise in the corporate adoption or falling interest rates.
In order for Bitcoin to hit $100,000, it must first overcome important resistance levels around $90,000 and $95,000. A significant push above these levels might set off a fresh round of bullish activity and propel Bitcoin to new heights. Bitcoin has an obvious route forward because there is not any short liquidity to impede it. Traders should be wary of sudden changes in sentiment though, especially on the spot market, where sustained growth is determined by actual buying demand.
Dan Burgin
Vladislav Sopov