Bitcoin Price Action Approaches Key Resistance
Bitcoin’s ($BTC) recent price action has drawn attention as it nears a key resistance level of $105k. While some aspects of its movement resemble the 2022 market behavior, experts urge caution in drawing immediate conclusions.
Jelle, a notable analyst, pointed out that while the $105k mark and the 50-day EMA/MA cluster present strong resistance, it’s important to see how Bitcoin reacts at this critical point.
At press time, the price currently sits around $96,500 in the last 24 hours. The behavior of Bitcoin near the $105k resistance could set the tone for its future movements.
Comparing 2021’s Peak to Today’s Market
The current Bitcoin market bears some resemblance to the conditions seen in 2021, especially with Bitcoin nearing a resistance level. Jelle referenced how Bitcoin saw a “quick liquidity grab” above the first high in 2021, followed by months of consolidation.
This market action created the foundation for the all-time high (ATH) at that time. However, there is a stark difference in the current environment.
In 2021, the market was navigating the end of massive Quantitative Easing (QE), while today’s market is dealing with the end of Quantitative Tightening (QT).
The current market conditions are fundamentally different from the ones Bitcoin faced in 2021. The end of QE in 2021 helped boost the market, leading to significant gains for Bitcoin.
Today, we are witnessing the end of QT, which could influence market behavior in different ways. As the balance sheets of central banks grow again, the market is likely to react differently. The $105k resistance is a crucial point, as Bitcoin’s reaction will determine the next steps in its price movement.