Bitcoin's $100K Struggle: Bearish Signs Emerge Amidst Market Caution

Bitcoin's struggle to maintain a close above $98,500 reflects a cautious sentiment among investors, as the cryptocurrency faces challenges in securing a firm foothold at recent price levels. Recent data indicates a significant shift in market dynamics, with Bitcoin flowing from derivative exchanges to spot exchanges, suggesting a potential bearish phase ahead.

CryptoQuant contributor J. A. Maartunn has noted the exit of funds from derivative exchanges, pointing to a possible start of a bearish phase in the market. Bitcoin has been unable to break above the critical resistance at $100,000, with concerns of a bearish phase looming. The current cryptocurrency landscape is marked by a reluctance among Bitcoin bulls to engage aggressively at recent price levels, as the cryptocurrency has remained under the psychological threshold of $100,000 for an extended period.

The macroeconomic environment plays a crucial role in shaping investor sentiment towards cryptocurrencies. With the Federal Reserve maintaining a hawkish stance, market participants are displaying increasing caution. This is reflected in the significant Bitcoin ETP outflows, suggesting a broader hesitation to invest during uncertain economic conditions. Such cautious approach could dampen demand as traders await clearer signals of market stability.

Beyond Bitcoin, several altcoins are exhibiting varied trends as they respond to the same market pressures. For instance, Ethereum (ETH) has been fluctuating within a large range, presenting opportunities for traders who can navigate the volatility. The general market’s performance suggests that many altcoins are not yet ready to break out of their trading ranges, and investor sentiment remains critical.

Analyzing Bitcoin’s current price chart reveals the struggle of bulls to sustain upward momentum. The BTC/USDT pair is hovering near key moving averages, showing signs of potential weakness. If the price dips below $94,000, it could trigger a further decline towards crucial support at $90,000. Conversely, if Bitcoin manages to reclaim the moving averages, it may find itself targeting higher levels up to $106,500.

As Bitcoin navigates its challenges, altcoins like Ethereum and Cardano are also under scrutiny. Ethereum has seen trading activity within a broad range, with buyers attempting to gain traction towards the downtrend line. Cardano, on the other hand, has shown a bull