Bitcoin Breaks Resistance…Focus on the $85,000-$95,000 Range

▲ Bitcoin (BTC) ©Godasol

Bitcoin (BTC) has surpassed its key resistance level of $82,000 and then $87,300, accelerating the cryptocurrency market's upward trend. However, with market sentiment soaring into the 'extreme greed' zone and some altcoins showing profit-taking, there's a possibility that Bitcoin may consolidate within the $85,000-$95,000 range for the time being.

According to investment specialized media FXStreet on September 22 (local time), the total cryptocurrency market capitalization increased by 3.6% over the past 24 hours, reaching $2.9 trillion. This represents a 38% increase compared to the low point in early August. While Dogecoin (DOGE) rose by 11.7%, VeChain (VET) by 6.8%, and Stellar (XLM) by 6.4%, altcoins like Avalanche (AVAX) fell by 7%, Tezos (XTZ) by 2.4%, and SushiSwap (SUSHI) by 0.4%, indicating short-term profit-taking movements. The market sentiment index surged to 78, entering the 'extreme greed' zone, the highest since July last year.

Bitcoin surpassed $87,300 overnight and then saw a pullback to $85,500 at the time of writing. The breakthrough of the $82,000 level, which had acted as resistance in May and August-September, triggered large-scale liquidations of short positions, and the market has since gradually stabilized. Technically, there is potential to rise to $94,000, but FXPro suggested that Bitcoin could move within the $85,000-$95,000 range for the next few weeks before attempting to break $100,000 by year-end.

The macroeconomic environment also supported risk-on sentiment. Amid a surge in the Nasdaq index, international oil prices and US Treasury yields fell, global stock markets rose, and optimism about US-China negotiations also boosted the cryptocurrency market. Changes were also detected in on-chain metrics. According to Santiment, Ethereum (ETH) saw increased activity from large and long-term holders alongside its price rise, and the number of non-zero balance wallets reached an all-time high of 207.17 million.

Corporate accumulation of cryptocurrencies also continued. Strategy resumed Bitcoin purchases after three weeks, adding 950 BTC, increasing its total holdings to 846,000. The cumulative purchase amount is $63.8 billion, with an average purchase price of $75,400. Strive also bought 1,355 Bitcoins last week for $107.7 million, expanding its holdings to 26,355. Currently, over 100 companies hold a total of 1.273 million Bitcoins, valued at $108.6 billion.

Ethereum accumulation also expanded. Bitmine purchased an additional 27,562 ETH last week, increasing its holdings to 5.984 million, and needs to acquire approximately 120,000 more to reach its target of securing 5% of the total supply. About 30 Ethereum treasuries have accumulated a total of 7.8 million ETH, with an estimated value of approximately $21 billion. With the market capitalization swelling to $2.9 trillion and investor sentiment entering extreme greed, how Bitcoin handles the $85,000-$95,000 range has emerged as a key watch point for the next upward trend.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*