Bitcoin's $100K Test: Bullish or Bearish?

Bitcoin's price has been volatile in recent days, with a significant dip nearing the $100,000 mark. The cryptocurrency is currently trading around $100,900, after a 3.37% decline in the last 24 hours. This pullback has raised questions about the future trajectory of Bitcoin's price.

Analysts are divided on whether this dip is a temporary setback or a launchpad for further growth. Some experts, like Aayush Jindal, a seasoned financial markets luminary with over 15 years of experience in Forex and cryptocurrency trading, believe that the current price action is a normal correction in an otherwise bullish trend. Jindal, who is also a software engineer and the director of a prestigious IT company, has a proven track record in technical analysis and chart interpretation.

On the other hand, some market participants are concerned about the potential impact of a drop below $100,000 on long liquidation pressure. According to Coinglass data, if Bitcoin falls below this level, the cumulative long liquidation strength of mainstream CEXs will reach 560 million. This could lead to a cascade of liquidations, further exacerbating the price decline.

However, if Bitcoin rebounds above $104,000, the cumulative short liquidation strength of mainstream CEXs will reach 768 million. This could indicate a significant shift in market sentiment and potentially signal a new bullish trend.

Despite the recent pullback, the crypto market as a whole is experiencing a widespread decline, with the DeFi and AI Agents sectors seeing the largest drops. The DeFi sector saw a 24-hour decline of 28.73%, with all four tokens in the sector falling by over 20%. The AI Agents sector had a 24-hour decline of 16.91%, with the top project Virtuals Protocol (VIRTUAL) falling by 12.74%.

The Meme sector continued to decline, with a 24-hour drop of 8.27%. Among them, the traditional Meme sector saw the largest decline, with Pepe (PEPE) falling by 11.33%, nearly halving from its previous high. Notably, Pudgy Penguins (PENGU) rose