Bitcoin (BTC) hit a new all-time high on December 17 but remains 5% below the $110,000 mark. Indicators such as ADX and NUPL suggest a slowdown in upward momentum, indicating a potential change in market sentiment.
While BTC remains in the Belief-Denial zone, highlighting continued confidence, its failure to clear key resistance levels is causing caution. The next few days will determine whether BTC regains upward momentum and tests $110,000 or faces a further correction towards critical support levels.
Current BTC Trend Shows Potential Change in Sentiment
The Bitcoin DMI chart shows that its ADX is currently at 29.2, which is significantly lower than over 40 just two days ago when Bitcoin hit a new all-time high. This decline in ADX indicates that although the trend remains relatively strong, its intensity is weakening.
With bearish momentum strengthening, the market appears to be moving toward a period of consolidation or potential further decline.
ADX (Average Directional Index) measures the strength of a trend: values above 25 indicate a strong trend, and values below 20 indicate a weak or non-trending market. Currently, D+ at 18.1 and D- at 27.8 suggest bearish forces are dominant, with sellers outpacing buyers in the short term.
This imbalance could push the price of BTC lower unless buyers regain control and D+ rises above D-, signaling renewed bullish momentum.
Bitcoin NUPL is far from the following thresholds
Bitcoin NUPL is currently 0.60, up from 0.628 when Bitcoin hit a new all-time high two days ago. This decline indicates a slight decline in unrealized gains among BTC holders, reflecting some profit taking or a cooling of the market after the recent surge.
Despite this drop, Bitcoin’s price remains firmly in the Belief-Denial zone, indicating confidence among investors, but caution is beginning to set in.
NUPL (Net Unrealized Gain/Loss) measures the cumulative unrealized gains or losses of BTC holders, classifying market sentiment into stages.
Values above 0.5 fall into the Faith-Denial zone, levels below 0.5 mark the Optimism-Anxiety stage, and above 0.7 signal the Euphoria-Greed stage, often associated with market tops. BTC’s current position at 0.60 suggests that while sentiment remains bullish, it is far from extreme greed and is still comfortably above alarm levels.
BTC Price Prediction: Is It Possible to Reach $110,000 in 2024?
If Bitcoin price can clear the resistance at $103,638, it could gain enough momentum to test new all-time highs around $108,000.
A successful move beyond this level could pave the way for the BTC price to reach $110,000 for the first time, which would signal continued bullish momentum and strong market confidence.
However, the EMA and ADX lines indicate that the current trend may be weakening, raising the possibility of a bearish shift. If short-term EMAs cross longer-term EMAs, a stronger downtrend may develop.
In this scenario, BTC price could test the $94,000 support level, and if it fails to hold, prices could drop further to $90,000, representing a potential 11.7% correction from current levels.
