The cryptocurrency market rally has stalled after Bitcoin briefly touched the $98k level on Wednesday.
At press time, Bitcoin is trading above $95,500, up 5% in the last seven days.
Leading altcoins Ethereum (ETH) and Ripple (XRP) followed BTC’s footsteps, hovering around key levels after their upside moves.
Market analysts are optimistic that Bitcoin’s price could push towards the $100k psychological mark if the current support level holds.
Bitcoin stays above the $94k support level
Bitcoin, the leading cryptocurrency by market cap, is trading above $95,500, down 1.5% in the last 24 hours.
The pullback comes after Bitcoin added more than 5% to its value this week, briefly touching the $98k level.
Analysts are optimistic that Bitcoin could rally higher, with some calling the asset undervalued.
In an email to Invezz, Ruslan Lienkha, chief of markets at YouHodler, pointed out that Bitcoin has shown a clear divergence from other risk assets, particularly US equities, over the past few months.
Given Bitcoin’s inherent volatility, such divergences do occur but are typically temporary.
The recent price action suggests that BTC is now moving toward a fairer valuation, closer to its previous all-time highs, rather than running ahead of fundamentals.
Lienkha added that,
“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.”
The analyst added that if US equity indices continue trading near all-time highs, reflecting strong investor confidence and relatively supportive financial conditions, Bitcoin could continue to close the performance gap and potentially move toward its previous all-time high.
Bitcoin could rally to $100k if the support level holds
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.
The momentum indicators suggest that 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.
In addition to that, 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 the bears push the price lower.