X post<\/a> on Friday, CryptoQuant analyst Julio Moreno shared insights from his technical analysis of the Bitcoin price action. Moreno highlighted that Bitcoin\u2019s most recent break beneath what was a price consolidation range of $120,000-$108,000 has caused a shift of attention towards $100,000 as the next critical level.<\/p>\nThe crypto analyst defended his report with the Bitcoin Trader On-chain Realized Price Bands metric, which measures the lower boundary of the average on-chain acquisition cost for Bitcoin short-term holders. Simply, this metric helps identify the price level that would act as support in cases where the price experiences corrective movement.<\/p>\n
From the chart shared above, $100.9k is currently the lower boundary of the average trader realized price, one that Moreno expects could serve as a support zone. <\/p>\n
Aside from technical analysis and on-chain activity, $100,000 is also a significant psychological price level, as it serves as the hallmark where Bitcoin enters a six-figure valuation. If the Bitcoin price were to fall to levels as low as $100,000, the strong psychological backing by market participants could translate to its price action. As a result, the flagship cryptocurrency could see temporary relief from the bearish pressure that it is currently under.<\/p>\n
What Next For Bitcoin?<\/h2>\n
As was previously mentioned, $100,000 stands as a significant level for the Bitcoin price, with psychology and technical analysis coming together to reinforce its importance.<\/p>\n
Derivable from Moreno\u2019s post is the conjecture that if the $100,000 support were to hold, Bitcoin\u2019s bullish sentiment among market participants could be renewed, thus setting the pace for the flagship cryptocurrency\u2019s recovery towards its current all-time-high price.\u00a0<\/p>\n
On the other hand, the failure of this important price level could carry grave implications, especially for short-term holders. A break in this psychological support could trigger a sharp sentiment shift amongst Bitcoin market participants, causing them to sell their holdings to minimize losses or escape with some profits.\u00a0<\/p>\n
Interestingly, the 365-day Moving Average (MA) sits around the $100,000 psychological support. For context, the 365-day MA is a technical indicator that shows Bitcoin\u2019s average closing price over the past year. By extension of its primary function, the indicator is used to gauge Bitcoin\u2019s direction in the long term.<\/p>\n
If Bitcoin should therefore slip beneath its 365-day MA of $100,000, it could be a sign that the digital asset is about to assume a long-term bearish trajectory, a sign which might precede major price corrections. As of this writing, Bitcoin is worth approximately $107,400, showing a 7-day loss of more than 5% of its value.<\/p>","protected":false},"excerpt":{"rendered":"
After a short-lived display of bullish momentum, where price returned as high as about $116,000 after the tariff-induced flash crash, Bitcoin\u2019s price has maintained a sharp downward trend in the third week of October. More shockingly, on-chain data has surfaced that paints a pessimistic yet uncertain picture of the cryptocurrency\u2019s future. $100,000 Emerges As Key […]<\/p>\n","protected":false},"author":0,"featured_media":105844,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-105843","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/105843"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=105843"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/105843\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/105844"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=105843"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=105843"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=105843"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}