Bitcoin struggles to break through the $100K resistance level, facing strong selling pressure. Analysts warn of a potential bearish head-and-shoulders pattern, which could push prices down to $78,000. However, positive on-chain metrics suggest a bullish outlook with declining exchange reserves and inflows.
Bitcoin's journey to reclaim the psychological $100K price level has encountered stiff resistance. At press time, the price hovered near a key pennant supply zone between $98K and $100K. This key resistance zone has proven challenging for bulls, as short position takers were defending it vigorously. Breaking through this resistance level is vital for Bitcoin to continue its upward trajectory and avoid a potential bearish reversal.
Bitcoin’s price chart suggested a possible head-and-shoulders pattern. If confirmed, this bearish setup could push the price down to the $78,000 region. However, the pattern remains invalidated until a decisive break below the neckline. For bulls, a strong daily or weekly close above $100K is critical. This would invalidate the bearish outlook and set the stage for Bitcoin to explore new highs.On-chain metrics provided a more optimistic perspective. Bitcoin exchange reserves have seen a consistent decline, signaling that fewer tokens are available for sale. This suggests that market participants are increasingly opting to hold their Bitcoin, hence reducing the king coin’s selling pressure.Adding to this, exchange inflows—a key metric for assessing potential selling activity—have been steadily decreasing since the 30th of December. The reduced inflows reported by CryptoQuant suggest that less Bitcoin is being transferred to exchanges, which further supported its bullish outlook. The battle between Bitcoin’s bulls and bears intensifies, the king crypto remains trapped beneath the $100K resistance level. A breakout above this key resistance level could set the stage for further gains. However, failure to do so might validate the bearish head-and-shoulders pattern. Reduced exchange reserves and inflows suggest a shift in sentiment, with holders appearing more confident in Bitcoin’s long-term prospects rather than shorting their existing positions
BITCOIN PRICE RESISTANCE HEAD-AND-SHOULDERS ON-CHAIN METRICS
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