Bitcoin (BTC) price has seen significant movements recently, fluctuating between key support and resistance levels

Bitcoin (BTC) price has seen significant movements recently, fluctuating between key support and resistance levels. As Bitcoin price nears critical levels

Bitcoin (BTC) price has seen significant movements recently, fluctuating between key support and resistance levels.

Many traders are eyeing the possibility of a breakout as Bitcoin price nears critical levels. However, with a substantial amount of Bitcoin being sold by miners and wave corrections taking place, the market was in a period of uncertainty at press time.

It created a situation where both potential opportunities and risks were building up, leaving traders on edge.

Miners Continue to Sell Bitcoin Amidst Price Surge

Bitcoin miners took advantage of the recent price surge, selling significant amounts of Bitcoin.

Miners sold 943 BTC, valued at approximately $850 million, following a rally in the cryptocurrency’s price, according to reports.

This action by miners was a key factor in the ongoing price movements. Selling pressure from miners could contribute to short-term corrections, as they often sell when prices rise to capitalize on profits.

However, while miners’ selling may pressure the market, it’s important to note that this behaviour is not necessarily a sign of bearish sentiment in the long term. Miners typically sell a portion of their holdings to cover operational costs, especially during periods of high volatility and rising prices.

The ongoing sell-offs reflected miners’ attempts to maximize profit during favorable market conditions.

Bitcoin Price Technical Analysis and the Possibility of a Breakout

On the technical front, Bitcoin price was testing a critical resistance level around $97,530 at press time. A breakout above this level could signal further bullish momentum, potentially pushing Bitcoin toward new all-time highs.

The price has been consolidating inside a specific range. While there has been some corrective action, the price held strong near the key levels.

If Bitcoin manages to break the $97,530 resistance, it could quickly approach the $98,300 mark. Analysts were watching for a clean breakout as the price continued to consolidate.

While the market remains in a corrective phase, this consolidation could set the stage for a breakout. The bullish momentum must pick up in the coming days to make that breakout possible.

Fibonacci Levels Suggest Key Support Zones for Bitcoin Price

The price action at the time of writing showed signs of a correction within the larger bullish trend. Bitcoin price retraced to key Fibonacci levels, which could act as important support zones.

The 23.60%, 38.20%, and 50% Fibonacci retracement levels at $93,561, $92,171, and $91,047, respectively, were crucial support levels to watch. Those levels indicated where Bitcoin could find support before continuing its upward trend.

Fibonacci extensions also showed that Bitcoin could face resistance around the $96,375 and $97,585 levels. If the price manages to hold above these key retracement levels, it could indicate that the bullish trend is intact.

On the other hand, a breakdown below the described levels could suggest further downward movement. In that scenario, BTC price could test lower support areas before any potential rally.

Market Sentiment and Demand Divergence

Amidst a week that saw the digital asset reach a new record high, there were observations indicating that the Bitcoin market sentiment was still mixed. More than 85% of Bitcoin holders were in profit, which could indicate a state of euphoria in the market.

This could also mean that it is in the overbought zone. Therefore, a short-term pullback can take place. Furthermore, the 30-day Demand Momentum for Bitcoin remained negative. It signaled a lack of strong demand from short-term holders.

According to data, long-term holders were accumulating less BTC than short-term holders were distributing. This divergence suggested that the recent price gains could be driven more by traders than by long-term investors.

Such dynamics tend to occur before the retrenchments in the market, thus raising concerns over the stability of the current Bitcoin price.

However, the number of active addresses was on the rise. It is a positive sign for the Bitcoin market when it comes to short-term retracements.