Cryptocurrency analytics firm Glassnode has emphasized the importance of Bitcoin maintaining its support level around $97,600, labeling it as crucial for ongoing bullish momentum.
A breach below this threshold, analysts warn, could trigger significant market volatility and potential downside risk for Bitcoin and the wider cryptocurrency ecosystem. This specific price point holds technical significance, converging with the cost basis for Short-Term Holders and aligning with a key Fibonacci retracement level.
The stability of Bitcoin around this support is viewed as fundamental to achieving institutional near-term targets, exemplified by Bitfinex’s projection of $115,000. Its failure, however, might increase selling pressure and destabilize the market.
Macroeconomic factors, including shifts in global liquidity conditions and monetary policies set by institutions like the Federal Reserve, are identified as major influences likely to impact Bitcoin’s ability to hold this critical level.
Investors and traders are advised to monitor price action around the $97,600 level closely and implement robust risk management strategies to navigate the heightened potential for volatility.