Bitcoin Holds $100K: Calm Before the Next Surge?

The cost of Bitcoin temporarily dipped after reaching around $106,250, but it’s currently holding steady above $100,000, potentially preparing to rise further.

  • Bitcoin started a downside correction from the $106,250 zone.
  • The price is trading below $103,500 and the 100 hourly Simple moving average.
  • There was a break below a key bullish trend line with support at $104,650 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could start another increase if it stays above the $100,000 support zone.

Bitcoin Price Holds $100K

The cost of a single Bitcoin began an encouraging increase that surpassed the $100,000 mark. Remarkably, Bitcoin managed to scale beyond the $102,500 and $103,800 thresholds.

Initially, a peak was reached at $106,246, and since then, the price has begun a decline. It dipped below both $104,000 and $103,500. Additionally, it broke through a significant bullish trend line with support at $104,650, as shown on the hourly chart of the BTC/USD pair, suggesting a possible shift in market sentiment from bullish to bearish.

As a crypto investor, I noticed that a low was set at approximately $99,538, and since then, the price has been on an upward trend. Interestingly, we’ve also seen a break above the 23.6% Fibonacci retracement level from the high of $106,246 to the low of $99,538.

Currently, Bitcoin’s price is dipping below $103,800 and its 100-hour Simple Moving Average. If it tries to rise, there’s immediate resistance at roughly $102,000. The major resistance lies around the $103,000 mark or the 50% Fibonacci retracement point of the recent drop from the peak of $106,246 to the low of $99,538.

Breaking through the $103,000 barrier could push the price upwards, potentially reaching the next significant resistance at $104,650. If the price manages to close above this point, it may continue its ascent, possibly challenging the $106,250 resistance. Further progress might take the price near the $108,500 mark.

More Losses In BTC?

If Bitcoin doesn’t manage to break through the barrier at $103,000, it might trigger a drop in price instead. A potential safety net for Bitcoin could be around $100,500 in the immediate term. The more substantial support level lies closer to $100,000.

Approaching support can be found around the $98,800 area. If there are further losses, the price may head towards the nearby $96,500 support level in the short term.

Technical indicators:

Hourly MACD – The MACD is now losing pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.

Major Support Levels – $100,500, followed by $100,000.

Major Resistance Levels – $103,000 and $104,650.

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2025-01-20 06:05