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Bitcoin’s price recovered from the most substantial declines earlier this week that drove it to a monthly low but still struggles to return to six-digit territory. With the weekly close just hours away, here are the potential risks the cryptocurrency faces if it remains under this coveted level. BTC to Close Below $100K? The last couple of weeks of 2024 were quite painful for BTC as its price dumped from its latest all-time high registered on December 17 of over $108,000 to $91,300 in days. The latter came on December 30 and marked the asset’s lowest price point in over a month. However, bitcoin reacted well to this correction and now sits above $98,000. This represents a 7.5% increase since that low. On a weekly scale, BTC is up by 3.5% compared to the valuation last Sunday. Perhaps the biggest factor holding bitcoin below $100,000 now is the ‘stiff supply wall’ that appears in its current levels. This means that a lot of investors have accumulated their BTC holdings at prices between $98,000 and $100,000, which essentially turns these levels into critical resistance lines, according to Ali Martinez. #Bitcoin $BTC faces a stiff supply wall between $98,000 and $100,000 that is currently acting as resistance! pic.twitter.com/GrDNNATLgT — Ali (@ali_charts) January 4, 2025 On the plus side, the same analyst outlined a highly bullish development for BTC, which occurred at the end of 2024. More than 48,000 BTC (valued at $4.7 billion at today’s prices) were withdrawn from exchanges, thus reducing the immediate sell pressure. Over 48,000 #Bitcoin $BTC have been pulled from exchanges in the past week, valued at over $4.5 billion! pic.twitter.com/V1agc0EtCe — Ali (@ali_charts) January 3, 2025 Where to Next? Martinez believes BTC might retest the 50-day moving average, which is currently at just under $97,000. Although bitcoin is currently above that level, it needs to close there, which will be “essential to signal the end of the correction and confirm bullish momentum.” #Bitcoin $BTC remains at a critical point. This might just be a retest of the 50-day MA before a potential move lower. A sustained close above the 50-day MA is essential to signal the end of the correction and confirm bullish momentum. pic.twitter.com/ppfEjfoJkc — Ali (@ali_charts) January 3, 2025 The analyst told his over 100,000 followers on X that he remains ‘cautiously bullish’ because the cryptocurrency could be forming a head-and-shoulders pattern that might lead to an even more violent decline to $78,000. In his latest post, Martinez highlighted that BTC has to close above $100,000 to invalidate this bearish setup, which is currently not the case. I’m cautiously bullish because for all we know, #Bitcoin $BTC could be forming a head-and-shoulders pattern that anticipates a correction to at least $78,000. This is why a strong close above $100,000 is crucial to invalidate this bearish setup. pic.twitter.com/2O1y3sEWgq — Ali (@ali_charts) January 4, 2025 The post Bitcoin Below $100K: Key Factors Holding BTC Back and Potential Risks appeared first on CryptoPotato .
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Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of BitMaden. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.
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XRP Targets $15 as Bull Flag Pattern Emerges and Open Interest Surges
Ripple’s XRP is showing strong bullish potential, with analysts pointing to a bull flag pattern and a surge in open interest (OI) as indicators of a potential price rally. According to Cointelegraph , XRP is targeting a rise to $15 , representing a 520% increase from its current price of $2.39 . Over the past two months, the XRP/USD daily chart has been forming a textbook bull flag , and a breakout above the key resistance level of $2.41 could trigger a massive upward move. Meanwhile, the 45% surge in OI , from $2.6 billion to $3.7 billion in the last 24 hours, suggests growing investor confidence in XRP’s price trajectory. Bull Flag Pattern: A Classic Bullish Indicator A bull flag pattern is a continuation pattern that often signals the resumption of an uptrend after a brief consolidation period. Key Features of the XRP Bull Flag Formation Period : Observed from Nov. 5, 2024 , to Jan. 6, 2025 on the daily chart. Resistance Level : The key resistance level at $2.41 needs to be breached for a confirmed breakout. Potential Price Target : Based on the flagpole height, the target price is calculated at $15 , indicating significant bullish momentum. Open Interest Surges as Investor Confidence Grows What is Open Interest? Open interest refers to the total number of outstanding derivative contracts, such as futures and options. A rise in OI often indicates increased market activity and investor interest in a particular asset. XRP’s OI Surge Increase : 45% growth in the last 24 hours, from $2.6 billion to $3.7 billion . Implications : Suggests significant market inflows and increased speculation on XRP’s potential rally. Technical Analysis: Key Levels to Watch Current Price : $2.39 (up 1.38% in the last 24 hours). Resistance Levels : Immediate Resistance : $2.41 (key breakout level). Target Price : $15 (based on bull flag projection). Support Levels : Initial Support : $2.25 (short-term support zone). Major Support : $1.90 (flagpole base level). Market Sentiment and Factors Driving Momentum Ripple’s Legal Wins : Positive developments in Ripple’s ongoing legal battle with the SEC have boosted investor sentiment. Institutional Interest : Increasing institutional adoption and partnerships strengthen XRP’s utility and demand. Technical Breakout Potential : The formation of a bull flag pattern has attracted traders looking to capitalize on the potential breakout. What’s Next for XRP? Bullish Case A daily close above $2.41 could confirm the bull flag breakout, setting XRP on a path toward $15 . Increasing OI and trading volumes support the likelihood of sustained bullish momentum. Bearish Case Failure to breach $2.41 could lead to a pullback to $2.25 or lower, delaying the rally. FAQs What is a bull flag pattern? A bull flag pattern is a technical chart pattern that indicates a continuation of an existing uptrend after a period of consolidation. Why is XRP’s resistance level at $2.41 important? A breakout above $2.41 would confirm the bull flag pattern, signaling a potential rally toward $15. What does the surge in open interest mean for XRP? The 45% rise in open interest suggests increased market activity and confidence in XRP’s bullish outlook. What are the risks to XRP’s rally? A failure to break above key resistance levels or broader market corrections could hinder XRP’s upward momentum. What is XRP’s price target based on the bull flag? The projected target price is $15, representing a 520% increase from its current level. Conclusion XRP is poised for a significant breakout, with a bull flag pattern and surging open interest fueling optimism among traders and investors. A close above $2.41 could trigger a major rally, potentially taking XRP to $15 . As the market anticipates this move, XRP’s performance will remain closely tied to technical factors and market sentiment. Investors should monitor key levels and indicators to navigate the opportunities and risks in the coming days. To learn more about the innovative startups shaping the future of the crypto industry, explore our article on latest news , where we delve into the most promising ventures and their potential to disrupt traditional industries Crypto Potato
