Bitcoin Price Faces Uncertainty: Is The Risk of a Drop Growing?

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Currently, Bitcoin‘s price is holding steady but slightly lower than the $95,500 region, suggesting a potential downward trend. The cryptocurrency appears to be demonstrating bearish characteristics, which could make it challenging for BTC to climb back above the $95,800 mark.

  • Bitcoin started a recovery wave from the $91,150 zone.
  • The price is trading below $94,500 and the 100 hourly Simple moving average.
  • There was a break above a connecting bearish trend line with resistance at $93,650 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could start another increase if it stays above the $92,500 support zone.

Bitcoin Price Struggles Below $95K

In simpler terms, the price of Bitcoin began a brief upward surge that managed to break through the $92,000 barrier. It further advanced past the $93,500 and $94,000 milestones.

In simpler terms, the price of Bitcoin (BTC) climbed beyond a significant level of resistance, which is known as the 23.6% Fibonacci retracement level from its peak at $102,761 to its low at $91,168. Additionally, there was a breakthrough of a bearish trend line that offered resistance at approximately $93,650 on the hourly Bitcoin-to-USD (BTC/USD) chart.

As a researcher, I’m observing that despite my expectations, the Bitcoin market remains active with prices hovering below the $95,800 mark. At present, the trading is taking place beneath this figure and also under the 100-hour Simple Moving Average. On the positive side, there appears to be immediate resistance around the $95,000 level.

Initially, a significant barrier lies around the $95,800 mark. Breaking through this hurdle might push the price upwards. Potential subsequent resistance could be found at $97,000 or the 50% Fibonacci retracement level of the downward slide from the peak at $102,761 to the trough at $91,168.

If the price surpasses $97,000 significantly, it may continue to climb and challenge the resistance at $98,800. Further increases could lead the price to approach the $99,500 resistance point.

Another Drop In BTC?

As a crypto investor, if Bitcoin doesn’t manage to break through the resistance at around $95,800, there might be a potential for a new drop in its price. Should that happen, the immediate support we could look towards is roughly at $92,500.

Initially, a significant level of backing can be found around $92,000. Currently, another support area is approaching at approximately $91,200. If further declines occur, the value may trend towards the nearby $90,000 support in the short term.

Technical indicators:

Hourly MACD – The MACD is now gaining pace in the bearish zone.

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

Major Support Levels – $92,500, followed by $91,200.

Major Resistance Levels – $95,000 and $95,800.

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2025-01-13 06:04