Bitcoin Gains Short-Term Momentum — Key Level at $95,000

Bitcoin has surged nearly 2% over the last 24 hours, now stabilizing above $92,200. The daily chart appears sluggish, but the 4-hour chart is showing signs of emerging strength.

Key Takeaways

Bitcoin has gained close to 2% in 24 hours and is maintaining a position above $92,200.
A bullish EMA crossover may occur soon, potentially directing Bitcoin towards the critical level of $95,000.
The Spent Coins Age Band has significantly declined, indicating rising dormancy and reduced selling pressure.
Key price levels to monitor include $93,300, which is critical for future upward movement, with support at $90,800.

In the next few trading sessions, the short-term charts may indicate whether Bitcoin will challenge the important $95,000 mark, a price level deemed essential for significant upward movement in BTC.

Emerging Strength with Associated Risks

Bitcoin is close to achieving a bullish exponential moving average (EMA) crossover on the 4-hour chart. The EMA places greater importance on recent prices, helping traders identify early shifts in trends. A bullish crossover occurs when the faster EMA ascends above the slower EMA, signaling increasing buying momentum. Presently, the 50-EMA is on the brink of crossing over the 100-EMA.

The distance between these two EMAs has narrowed considerably. Should the crossover occur, Bitcoin could gain a clearer route toward the key resistance level at $95,700. However, the Bull Bear Power metric, which reflects who is driving each candle, has started to weaken. If it continues to decline, the completion of the crossover may be jeopardized. This presents a primary short-term risk.

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Analysts at B2BINPAY, an all-in-one crypto ecosystem for businesses, align with this outlook:

“Bitcoin is fluctuating between the $92,000 and $93,000 range, yet attempts to breach the $95,000 level have been futile. The market lacks the necessary drivers for a confident breakthrough. … If that happens, we might see Bitcoin attempt $96,000. Should the market consolidate above this level, the next target could be $100,000,” they noted.

This reinforces the idea that $95,000 is a pivotal resistance point and that short-term strength must persist for long-term increases, potentially even beyond the $100,000 milestone.

Increasing Dormancy as a Possible Catalyst

The Spent Coins Age Band measures how many coins shift between holders. A decline in this metric suggests older coins are remaining stagnant (increased dormancy), resulting in reduced selling pressure, which often coincides with price rebounds.

This metric has decreased from 24,100 on December 10 to 12,500 today, representing nearly a 50% drop. Past occurrences of similar declines have led to upward rallies.

For instance, between December 2 and December 9, the number of spent coins fell from 27,800 to 9,200, resulting in Bitcoin rising approximately 5%. Between November 21 and November 24, a reduction in spent coins saw Bitcoin increase from $85,500 to $92,300, an 8% climb in the following days.

Although the current decline is smaller, the overall pattern remains consistent. A rise in dormancy (decreasing spent coins) alongside a potential EMA crossover could be a significant factor on a short-term chart.

Key Bitcoin Price Levels to Monitor This Week

The first major barrier for Bitcoin’s short-term price movement is $93,300. Bitcoin has not closed a 4-hour candle above this threshold since December 9. A breakthrough over this level would pave the way to $94,300.

If the EMA crossover is successful and buying momentum remains robust, Bitcoin could reach $95,700, a line that will determine its potential to approach levels discussed by analysts.

Support is seen at $90,800. A dip below this level could shift the focus back to $89,300 and postpone any attempts to reach $95,000.

Currently, Bitcoin is facing three aligned indicators: a potential EMA crossover, decreasing activity from spent coins, and prices nearing resistance. Should buyers defend support and current trends persist, Bitcoin may finally have the opportunity to test $95,000, more precisely at $95,700.