Key Takeaways
- A popular trader warns that Bitcoin’s bull market will be “officially over” if the price loses the psychologically crucial $100,000 support level.
- The market faces a clash of technical signals, with some indicators showing “exhaustion” and bearish divergence, while a new bullish divergence on the Relative Strength Index (RSI) gives traders hope for a rebound.
- Many analysts view the area around $100,000 as a prime accumulation zone, signaling that they see the current dip as a buying opportunity rather than the start of a bear market.
The Bitcoin bull market is currently at a critical juncture, facing a major test of a key technical and psychological support level. According to popular trader Roman, the continuation of the entire bull cycle is dependent on the $100,000 price point.
If Bitcoin fails to hold above this six-figure milestone, the current uptrend could be over.
The Psychological Battle at $100,000
The $100,000 level is particularly significant as it is a major psychological milestone that, if held, can confirm the market’s bullish conviction.
However, a break below it could trigger a wave of panic selling and signal a trend reversal. With the market having already dipped 15% from its all-time highs above $125,000, the importance of this level cannot be overstated.
A “bearish divergence” occurs when an asset’s price makes a new high but its RSI makes a lower high, suggesting weakening momentum. These signals have led Roman to conclude that losing the $98,000-$100,000 range would be a major bearish confirmation.
The Case for a Rebound
Despite the gloomy warnings, other traders are finding reasons for optimism. A new bullish divergence has appeared on the four-hour RSI chart, which is the opposite of a bearish one and can be an early signal that selling pressure is waning and that a new uptrend is on the horizon.
Trader ZYN, for example, believes that if the current level holds, “a new ATH in the next 4–6 weeks is on the table.” Moreover, many analysts view the current dip as a buying opportunity rather than a cause for panic.
As trader Michaël van de Poppe noted, he sees the area around $102,000-$104,000 as “the best period to accumulate your positions on.”
This “buy the dip” mentality is common during bull markets, as seasoned investors see temporary price pullbacks as a chance to acquire assets at a discount before the next leg up.
Final Thoughts
The Bitcoin market is a study in contrasts, with conflicting technical signals and a divided trading community. The fate of the bull market hangs in the balance, with the $100,000 level serving as the line in the sand. While a break below it could confirm a bear market, the presence of a bullish RSI divergence and the strong “accumulation” mindset of many traders suggests that hope is far from lost.
Frequently Asked Questions
What is a psychological support level in crypto?
A psychological support level is a price point, often a round number, that traders and investors view as a strong barrier that will prevent the price from falling further due to its emotional significance.
What is an RSI bullish divergence?
A bullish divergence on the Relative Strength Index (RSI) occurs when the price of an asset makes a new low, but the RSI makes a higher low, which can be a signal that a price reversal to the upside is imminent.
What does it mean to “accumulate” positions?
To “accumulate” means to strategically buy an asset over time, often during price dips, with the goal of building a larger long-term position at a favorable average cost.
