Bitcoin surges 1.10% in a week but faces key resistance at $98,081

Bitcoin's recent market performance has shown a positive trend, with a 1.10% increase in the past week. However, the future trajectory of the premier cryptocurrency remains uncertain due to macroeconomic developments and recent statements from global leaders. Despite these uncertainties, Bitcoin has recorded spontaneous market gains, reaching a local peak of around $95,000. Currently, the crypto asset trades around $86,000, with little indication of its future movement.

Top market analyst Ali Martinez has provided insights into Bitcoin's price action, noting that it is currently stuck between two key accumulation levels based on its cost basis distribution (CBD). The CBD helps identify major support and resistance levels by showing where significant amounts of Bitcoin were bought or sold. According to Martinez, Bitcoin will face a key resistance at $98,081. This prediction is based on the fact that investors previously acquired 320,040 BTC at this price region and are likely to sell following a price rebound to exit the market with little or zero losses. If Bitcoin bulls can mount sufficient buying pressure to break past this resistance level, it could pave the way for a return above $100,000 and perhaps a new all-time high.

On the other hand, if Bitcoin resumes its correction trend, Martinez highlights that the next significant support level based on accumulation data is at $59,882, where 220,150 BTC have been previously accumulated. If Bitcoin declines toward these support levels, it is likely to experience a strong bounce as long-term holders are likely to acquire more BTC to defend their positions. However, any decisive break below $59,882 would trigger a massive amount of panic selling.

At the time of writing, BTC trades at $85,995 following a minor 1.98% decline in the past day. Its daily trading volume is down by 6.38%, indicating a decrease in market interest. Despite positive events like the establishment of a US Strategic Bitcoin Reserve, the BTC market remains in a rather volatile state as indicated by the larger market reaction to events of the past week.