Bitcoin News Today: Bitcoin's $100k Crossroads: Technical Doubts vs. Holder Resilience

Bitcoin's recent price action has sparked renewed debate over whether the $100,000 threshold-a symbolic floor for the cryptocurrency's long-term bull case-is in jeopardy. After a sharp decline below $108,000 on Halloween, Bitcoin has stabilized near $109,000, with technical indicators and on-chain metrics offering mixed signals. Analysts are divided on whether this pullback marks a temporary correction or a more significant shift in market sentiment, according to a Yahoo Finance report.

The selloff coincided with the Federal Reserve's 25-basis-point rate cut, which, while anticipated, was accompanied by Chair Jerome Powell's cautious remarks about inflation. This prompted a wave of liquidations, with Coinglass data showing $890 million in position closures, 80% of which were long positions, as the Yahoo Finance report notes. Meanwhile, on-chain metrics suggest resilience from long-term holders. Coin Days Destroyed (CDD), a measure of dormant coin movement, has fallen sharply, indicating reduced selling pressure from older wallets. Similarly, the Net Unrealized Profit/Loss (NUPL) ratio dropped to 0.48, one of its lowest levels since April, signaling that weaker traders have exited while stronger hands remain, according to a CCN analysis.

Technical analysts are watching key support and resistance levels closely. Bitcoin's daily chart has formed a head-and-shoulders pattern, typically a bearish signal, but bullish momentum-evidenced by a rising Money Flow Index-has pushed prices past $108,982. If this trend continues, the next target could be $112,291, with a potential test of $117,640 in a bullish scenario. However, a breakdown below $103,633 could reignite fears of a deeper correction, the CCN analysis warns.

Geopolitical tensions have also weighed on sentiment. A brief escalation in U.S.-China trade war rhetoric-triggered by Donald Trump's comments on tariffs-sent Bitcoin down nearly 18% from recent highs. But the easing of tensions, including renewed U.S.-China trade talks, has since provided a lifeline. Analysts note that lower inflationary pressures could give the Fed more flexibility to cut rates further, a scenario historically favorable for risk assets like crypto, the Yahoo Finance report notes.

Despite the volatility, many remain cautiously optimistic. Historical patterns show that major corrections often precede strong rebounds, and the current market structure appears healthier than in previous cycles. For instance, Bitcoin's 2023 Halloween price of $34,479 marked a 50% annual gain, and while this year's performance is less dramatic, the absence of widespread panic selling suggests underlying strength, the CCN analysis adds.

The coming weeks will be critical. If long-term holders continue to avoid liquidating their positions-and with retail investors showing signs of capitulation-the $105,000 support level could hold, setting the stage for a potential breakout. However, any further erosion of confidence, particularly amid macroeconomic uncertainty, could force a reevaluation of the $100,000 narrative.