Bitcoin's $105K Reclaim: Key to Recovery

Bitcoin Faces Selling Pressure: Can It Reclaim $105,000 to Spark a Potential Recovery?

Bitcoin is facing a crucial moment as it declines to $100,682 amid increased selling pressure from long-term holders, testing key support levels. The surge in Bitcoin’s Liveliness indicates significant sell-off activities, with a notable rise in Coin Days Destroyed, suggesting a shift in market dynamics.

“Reclaiming the $105,000 threshold could reinstate bullish momentum toward $109,699,” noted a market analyst from COINOTAG, emphasizing the stakes involved.

Bitcoin is testing critical support at $100,000 as long-term holders sell, with potential recovery depending on reclaiming $105,000.

Bitcoin’s Current Struggles and Future Prospects

With Bitcoin (BTC) failing to secure above $105,000, the leading cryptocurrency is experiencing turbulent times. The recent downturn can be primarily attributed to the activities of long-term holders (LTHs), who have begun liquidating their assets, thus exerting additional downward pressure on the price.

Liveliness metrics have surged, indicating that a significant number of previously dormant coins are being sold. This phenomenon relates closely to the notion that LTHs play a vital role in sustaining market stability. When they start selling, it often signals a potential shift towards bearish market sentiment, leading to further price declines.

Moreover, the Network Value to Transaction (NVT) Signal presents a compelling case for Bitcoin’s potential undervaluation. Currently at a low, this metric indicates that Bitcoin’s price does not align with its transaction activity, suggesting that an uptrend could be in the making should broader market sentiments shift positively.

Investors remain cautiously optimistic. The lack of substantial negative sentiment indicates that if conditions improve—like increasing buy-side pressure or favorable macroeconomic factors—there could be a resurgence in demand for BTC.

BTC Price Outlook and Support Levels

Bitcoin’s recent drop of 3.88% brings its value down to $100,682, influenced largely by LTH liquidations. Crucially, the currency’s failure to maintain