While Bitcoin (BTC) experienced a major rally last week, rising to $109,000, the tension between Israel and Iran overshadowed this.
As selling pressure increases in Bitcoin, sellers are trying to take control.
At this point, Bitfinex analysts said in a recent report that selling pressure from the Israel-Iran tensions has increased and Bitcoin is at risk of falling further.
Despite the risk of a drop, analysts added that Bitcoin needs to hold above $102,000 for a potential recovery.
At this point, analysts said that Bitcoin’s current situation resembles previous patterns that usually result in Bitcoin rallying shortly after aggressive sell-offs.
“These sell-offs resemble past capitulations and often signal local bottoms.
“If Bitcoin can hold the $102,000-$104,000 zone, it means that the selling pressure has been absorbed and the market is ready to recover.”
Analysts also added that technical indicators suggest a short-term bottom between $102,000 and $104,000.
That could potentially trigger a rally above $112,000, or new all-time highs, within six to eight weeks. Similar patterns have eventually led to rallies of 18-25% in Bitcoin, according to analysts.
This Level Indicates a Bull-Bear Line in Bitcoin!
Apart from Bitfinex analysts, analysis company Alphractal also pointed to $98,000 for Bitcoin.
Alphractal noted that Bitcoin is likely to remain bullish as long as it remains above the key $98,300 support. However, breaking this threshold could tip BTC into a deeper correction.
“As long as Bitcoin remains above the Realized Price of short-term investors (STH), we can still consider the market bullish.
The bullish scenario only changes if BTC loses the $98k level, which could trigger a deeper decline.”
*This is not investment advice.