As Bitcoin nears $100,000, market watchers anticipate short-term consolidation, though the asset’s uptrend is likely to continue.
Bitcoin (BTC) price returning to $100,000 could prompt “short-term consolidation,” analysts warn, though the long-term outlook for the cryptocurrency remains positive. While key psychological levels often lead to profit-taking, analysts point to gold’s rise to new all-time highs as a sign of growing momentum for alternative assets.
Analysts at Matrixport noted that the shift in sentiment that began in the summer of 2023, when gold broke above $2,000, has boosted the outlook for Bitcoin since it has increasingly been seen as a form of “digital gold,” a narrative popularized by investment giant firm BlackRock.
“Regardless of the prevailing narrative, both gold and Bitcoin are poised to grow in importance as alternative assets gain momentum. While key psychological levels-such as gold at $3,000 or Bitcoin at $100,000-could trigger short-term consolidation, the broader uptrend likely remains intact.”
Markus Thielen, independent analyst
As crypto.news explained earlier, Bitcoin now faces two potential risks and two opportunities. First, there are signs that investor sentiment remains fearful.
While the fear and greed index has moved out of the extreme fear zone (18), it still sits in the fear zone at 22. Historically, Bitcoin and other cryptocurrencies perform better when the index is in the greedy zone. This continued fear is reflected in spot Bitcoin exchange-traded funds, which saw $143 million in assets leave, bringing total weekly outflows to $870 million. These funds have experienced outflows for five consecutive weeks.
Second, Bitcoin has formed a death cross as the 50-day and 200-day Weighted Moving Averages crossed, signaling potential downside.
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