Bitcoin Price Prediction: Can BTC Sustain Its Momentum?

Key Takeaways

• Support at $108,000 is critical. A drop below this could trigger a bearish trend with targets near $100,000 and $96,000.
• Long liquidation risk is substantial. Over $2.6 billion in long positions are at risk if Bitcoin falls under $100,000.
• Bullish momentum remains intact. Analysts suggest BTC could break the all-time high and reach $116,000.
• Current consolidation phase is unique. Multi-month sideways movement indicates a potential shift from historical cyclical patterns.

Faces Key Resistance at $108K

Crypto analyst Daan Crypto Trades recently highlighted the importance of Bitcoin staying above $108,000. In a Thursday commentary, he stated:

“You don’t want to see this deviate back below $108K again at this point.”

On the same day, Bitcoin reached $110,498 but later retraced to approximately $109,250, according to CoinGecko. This level sits roughly 2.5% below Bitcoin’s all-time high of $111,970, illustrating a critical zone for the asset.

Bitcoin Price Analysis

Source: CoinMarketCap

The $110,000 Region: A Crucial Milestone

Daan noted that any close around the $110,000 mark would be a positive sign, signaling potential for further gains. Currently trading near $109,250, BTC remains in a fragile state where small fluctuations could determine the short-term trend.

What Happens If Bitcoin Falls Below $108K?

Bitcoin only recently reclaimed the $108,000 level on Wednesday. Daan’s analysis suggests that falling back under this price could spark a bearish downtrend, with significant downside risks looming.

Potential Downside Targets: $100K & Beyond

If BTC drops below $108,000, it might continue declining toward $100,000, with a possible extension down to $96,000. This price movement could have severe implications for traders with leveraged long positions.

According to CoinGlass, approximately $2.67 billion in Bitcoin long positions are at risk of liquidation if the price moves under the $100,000 threshold.

If BTC Falls To $99,445, Nearly $2.7B In Long Positions Will Be At Liquidation Risk

Source: CoinGlass

This marks a significant liquidation zone, as Bitcoin has not dipped below $100,000 since June 22nd, when geopolitical tensions briefly pressured the price down to $98,900.

Optimistic Analysts See Further Upside Potential

Despite bearish warnings, many analysts remain confident in Bitcoin’s bullish momentum.

Bullish Perspectives

• Miles Deutscher, crypto analyst, commented:
  “It’s very hard to be bearish here.”

• Crypto trader CryptoFayz pointed out that surpassing the current all-time high of $111,960 could propel Bitcoin toward $116,000.

• Markus Thielen of 10x Research shared with Cointelegraph that the $116,000 level could be reached by the end of July. Thielen cited factors like strong inflows into spot Bitcoin ETFs, ongoing uncertainty around the US Federal Reserve’s policies, and the rapid decline of Bitcoin supply on exchanges as key drivers behind this optimistic Bitcoin price prediction.

Bitcoin’s Current Consolidation: What Makes It Different?

Daan also noted that the ongoing consolidation phase differs from earlier ones in this market cycle.

It is still following the same pattern where it stalls, deviates below, retakes the range and then grinds higher, he said, but the process is “missing the actual breakout and continuation.”

Possible Changing Market Dynamics

James McKay, founder of McKay Research, weighed in on Bitcoin’s price behavior:

“The longer we have these periodic, multi-month consolidations, the more it’s going to take us off the beaten path with respect to the typical four-year cyclical behavior.”

This suggests that Bitcoin may be entering a more complex phase of price action, making traditional cycle-based Bitcoin price predictions more challenging.

FAQ

What is the current Bitcoin price prediction?

Bitcoin’s price is predicted to either break above its all-time high of around $112,000 and potentially rise to $116,000 or face a bearish correction toward $100,000 if it falls below the $108,000 support level.

Why is the $108,000 level important for Bitcoin?

The $108,000 level acts as a critical support. Falling below this could trigger a downtrend and cause significant liquidations among traders holding long positions, increasing selling pressure.

How much long liquidation risk does Bitcoin currently have?

Approximately $2.67 billion in Bitcoin long positions are at risk of liquidation if the price drops below $100,000, based on data from CoinGlass.

What factors support a bullish Bitcoin price prediction?

Strong inflows into spot Bitcoin ETFs, uncertainty around the US Federal Reserve’s policy decisions, and shrinking Bitcoin supply on exchanges support potential price increases.

How does Bitcoin’s current consolidation differ from past cycles?

Bitcoin is experiencing a longer and more complex consolidation phase, which might deviate from its typical four-year cyclical behavior, making price prediction more challenging.