Bitcoin’s rally slammed into a wall after briefly flirting with $98k on Wednesday. As of now, BTC is trading above $95,500, up 5% over the last seven days. Major altcoins like Ethereum (ETH) and Ripple (XRP) followed Bitcoin’s lead, pausing around key levels after their recent climbs. Analysts remain optimistic, suggesting Bitcoin could eye the $100k psychological mark if it holds above the crucial $94k support.
Bitcoin, the top cryptocurrency by market cap, is currently above $95,500, down 1.5% in the last 24 hours. This pullback follows a week where BTC gained over 5%, briefly touching $98k. Some analysts even call the asset undervalued. In an email to Invezz, Ruslan Lienkha, chief of markets at YouHodler, noted Bitcoin’s clear divergence from other risk assets, especially US equities, over recent months. While such divergences are typically temporary due to Bitcoin’s volatility, recent price action suggests BTC is moving toward a fairer valuation, closer to its previous all-time highs rather than running ahead of fundamentals. Lienkha added, “I do not expect prolonged stalling at current levels. Instead, Bitcoin is more likely to either retest the $90K area or continue higher toward $100K. From a technical perspective, $100K represents the next significant resistance level, while the $90K zone would act as the nearest meaningful support in the event of a pullback.” He further explained that if US equity indices continue trading near all-time highs, reflecting strong investor confidence and supportive financial conditions, Bitcoin could close the performance gap and potentially move toward its previous all-time high.
The BTC/USD 4H chart remains bullish and efficient despite the ongoing pullback. BTC rose to a two-month high of $98k on Wednesday after finding support around the previously broken upper consolidation zone at $90,000 last week. Momentum indicators suggest the bulls are still in control. If the $94,253 support level holds, Bitcoin could extend the surge toward the key psychological $100,000 level. The Relative Strength Index (RSI) on the 4-hour chart reads 65, above the neutral level of 50, indicating the bulls still have control of the momentum. Additionally, the Moving Average Convergence Divergence (MACD) shows a bullish crossover that remains intact. On the flip side, if the $94,253 level fails to hold, BTC could extend the decline toward the 50-day Exponential Moving Average (EMA) at $92,207. The support level at $90k could also come into play if bears push the price lower.
