Bitcoin approaches a key resistance level of $105k, with analysts watching closely for a breakout or reversal. The current market setup contrasts with 2021’s peak, as QT ends rather than QE. Price action near this resistance level will likely define Bitcoin’s next move. Support & resistance levels remain crucial for traders assessing short-term direction.
Analysts emphasize watching Bitcoin’s reaction at $105k resistance level.
Bitcoin’s price action shows similarities to 2022, but the market conditions vary.
Bitcoin Price Action Approaches Key Resistance
Bitcoin’s ($BTC) recent price action has drawn attention as it nears a key resistance level of $105k. While some aspects of its movement resemble the 2022 market behavior, experts urge caution in drawing immediate conclusions.
Jelle, a notable analyst, pointed out that while the $105k mark and the 50-day EMA/MA cluster present strong resistance, it’s important to see how Bitcoin reacts at this critical point.
At press time, the price currently sits around $96,500 in the last 24 hours. The behavior of Bitcoin near the $105k resistance could set the tone for its future movements.
Comparing 2021’s Peak to Today’s Market
The current Bitcoin market bears some resemblance to the conditions seen in 2021, especially with Bitcoin nearing a resistance level. Jelle referenced how Bitcoin saw a “quick liquidity grab” above the first high in 2021, followed by months of consolidation.
This market action created the foundation for the all-time high (ATH) at that time. However, there is a stark difference in the current environment.
In 2021, the market was navigating the end of massive Quantitative Easing (QE), while today’s market is dealing with the end of Quantitative Tightening (QT).
The current market conditions are fundamentally different from the ones Bitcoin faced in 2021. The end of QE in 2021 helped boost the market, leading to significant gains for Bitcoin.
Today, we are witnessing the end of QT, which could influence market behavior in different ways. As the balance sheets of central banks grow again, the market is likely to react differently. The $105k resistance is a crucial point, as Bitcoin’s reaction will determine the next steps in its price movement.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information.
Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.
