Bitcoin Holds Above $100,000 Amid Mixed Signals

Bitcoin has experienced significant volatility in the past 24 hours, with heavy selloffs occurring. However, it has managed to maintain its position above the $100,000 mark, currently trading around $103,700. This stability is notable, especially given the signs of exhaustion that have surfaced in the past 48 hours.
Long-term indicators suggest a bullish continuation for Bitcoin's price, but short-term models indicate a potential breakdown of bullish strength as the cryptocurrency approaches the critical $100,000 support zone. This mixed sentiment is reflected in the analysis provided by popular crypto analyst Willy Woo, who highlighted both the good and bad news based on Bitcoin’s current technicals.
On the positive side, one of the strongest long-term signals, the Bitcoin Risk Signal, is currently trending downwards. This decline indicates that buy-side liquidity is dominant in the long-term environment, setting the stage for another strong upward movement. The lower the risk reading, the safer it is to hold or accumulate Bitcoin, and the current signal shows a relatively low-risk environment for long-term investors. Woo noted that this long-term setup remains intact, with Bitcoin trading well above the psychological six-figure mark, favoring the bulls in the long term.
However, the short-term models, including the Speculation and SOPR (Spent Output Profit Ratio) metrics, are flashing caution. These indicators suggest that the strength of the rally from $75,000 to $112,000 has started to weaken, especially with flat capital inflow in the past three days. This weakening rally could lead to a consolidation period if spot buying does not pick up strongly in the coming week, particularly with U.S. markets reopening after a long weekend.
The critical price action this week will determine Bitcoin's next move. If buying pressure opens up quickly, Bitcoin could break above $114,000 and head toward the next major liquidity zone between $118,000 and $120,000. Conversely, failure to push higher could confirm bearish divergences and set the stage for another round of consolidation.
In summary, while the long-term outlook for Bitcoin remains bullish, the short-term picture is more uncertain. The next few days will be crucial in determining whether Bitcoin can maintain its momentum above $100,000 or face another period of consolidation.

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