Bitcoin price receded on Wednesday as the $110k mark shapes up to be the new psychological barrier. BTC reached a new record high price of $108,364 on Tuesday, but with many investors already in profit, buying appetite has slowed significantly. The crypto market bellwether was down by 1.7% and traded at $104,302 at the time of writing.
What’s moving Bitcoin price?
The wider crypto market traded downward early on Wednesday, with the total market capitalization down by more than $100 billion to stand at $3.64 trillion. Notably, the $103k-107k has been an accumulation zone for Bitcoin price for the last three days.
Therefore, a breakout could trigger a momentum buildup to have a go at $110k or potentially slip below six figures. Breaking above $108k could bring $110k into play, while a slip below $103k could pave the path to $90k territory.
Technical indicators remain bullish, with BTC price trading above the 9 and 21-SMA on the daily chart. In addition, it is above the Volume Weighted Moving Average (VWMA) on the same time frame.
Meanwhile, Blackrock, a global investment giant with $11 trillion in Assets Under Management (AUM) released a 2-minute video advocating for institutions to have a portion of their portfolio in Bitcoin. According to Blackrock, governments have “become less reliable cushion against equity selloffs.” This signifies a high likelihood that institutional demand for Bitcoin could rise significantly in the new year.
Bitcoin price prediction
Bitcoin price pivots at $104,140, and resistance at that level will favour the downward momentum to prevail. With the sellers in control, BTCUSD will go lower and could find the first support at $101,745. However, if the momentum strengthens, the price could break below that level and test $99,310.
Conversely, moving above $104,140 will signal control by the buyers. In that case, the value of Bitcoin could move higher and meet the first resistance at $106,190. A breach of that mark will invalidate the downside narrative. That could open the path for the price to move higher to the second resistance at $108,000.
