Bitcoin has shown a notable upward trend recently, breaking through $90,000 after more than 5 weeks of stagnation. Currently, Bitcoin is trading around $94,401, approaching the critical resistance level of $95,761.
This suggests that Bitcoin has not yet reached saturation, and if major barriers are broken, additional upward momentum may be possible.
Bitcoin Investors Are Greedy
The market sentiment for Bitcoin remains positive, with investors showing high optimism about further price increases. Social media posts indicate a surge in bullish sentiment, reaching a level of optimistic posts not seen since Donald Trump's election night on November 5, 2024. This positive atmosphere suggests that many investors are ready to capitalize on Bitcoin's potential growth, further fueling its upward trend.
However, the extreme level of market greed raises questions about the sustainability of this upward trend. As investor sentiment becomes increasingly optimistic, there is a risk of reaching a local peak if too many traders become overly greedy.
Bitcoin's broader macro momentum is signaling a rebound in the Profit/Loss (P/L) ratio, approaching a neutral 1.0 level. This change indicates a balance between coins in profit and those in loss. Historically, the 1.0 threshold has acted as resistance during bearish phases, but consistently crossing this level could signal a strong Bitcoin recovery and sustained upward momentum.
The transition to a neutral P/L ratio suggests potential strength but also opens the possibility of investors facing pressure to realize profits. Therefore, whether Bitcoin can maintain its momentum depends on how investors react to price movements and whether they will sell or hold their positions.
BTC Price Needs to Rise
Bitcoin's recent price movement shows a 10% increase over the past 7 days, trading at $94,401. The cryptocurrency king is now just below the important resistance level of $95,761, which has been maintained for a long time. Breaking this level would push Bitcoin towards a new all-time high, with $100,000 being the next major milestone.
If Bitcoin breaks through $95,761, increased market greed will encourage investors to hold rather than sell their positions. This will further fuel the altcoin momentum and is likely to push Bitcoin closer to $100,000, as traders have a strong desire to capitalize on potential gains.
However, if Bitcoin fails to maintain levels above $93,625, the price could drop to the support level of $91,521. A deeper decline to $89,800 could jeopardize the bullish momentum, potentially delaying an immediate recovery and increasing the likelihood of a correction phase.
