Bitcoin Struggles Below $100K as Market Awaits Critical Price Moves

NEW YORK — Bitcoin (BTC) has fallen below the $100,000 mark, sparking concerns among investors as selling pressure mounts. The cryptocurrency, which has been trading sideways since mid-January, is now testing key support levels, with analysts divided on whether this signals a healthy retracement or the start of a deeper correction.

Since reaching all-time highs earlier this year, Bitcoin has struggled to maintain upward momentum, fluctuating between $97,750 and its peak. Market sentiment remains split, with bulls viewing the current dip as a temporary pullback before a potential rally toward $110,000. Bears, however, warn that BTC may have already peaked, suggesting the market could be entering a distribution phase that could lead to prolonged consolidation.

On-chain metrics from CryptoQuant offer a nuanced perspective. The adjusted net unrealized profit/loss (aNUPL) indicator, which measures market sentiment, shows Bitcoin in a “zone of confidence” with a value of 0.4. Historically, major bull market tops occur when aNUPL reaches 0.7–0.8, signaling overheated conditions. The current level suggests moderate optimism and room for further growth if market conditions remain stable.

Glassnode, a prominent on-chain analytics firm, echoed this sentiment, noting that Bitcoin’s Realized Cap—a metric tracking net capital inflows—has grown 2.1x from its 2022 low, well below the 5.7x peak of the last cycle. “The typical euphoric phase sees a sharp acceleration, but this hasn’t fully materialized yet,” the firm stated on social media platform X.

Bitcoin’s immediate future hinges on its ability to reclaim the $100,000 level. If bulls fail to push the price above this threshold, analysts warn that BTC could face further downside, with $97,500 emerging as a critical support zone. A break below this level could trigger a deeper correction, while holding it could pave the way for a recovery.

“The next few days will be crucial for Bitcoin’s short-term direction,” said one analyst. “If buyers fail to step in, we could see a prolonged dip before any meaningful recovery.”

As the market navigates this volatile phase, traders are closely watching for signs of a decisive move. With Bitcoin’s role as a macro asset gaining traction and exchange-traded fund (ETF) inflows continuing, some analysts remain optimistic about its long-term potential. However, the immediate focus remains on whether BTC can stabilize above key support levels and regain its upward trajectory.