Bitcoin Price Takes a Breather: Gains Reduced Amid Volatility

As a crypto investor, I’ve noticed that Bitcoin‘s price has dipped below the $100,000 mark. It seems we’re experiencing a correction in gains, and it looks like BTC might find it challenging to maintain its position above the $96,000 support level.

  • Bitcoin started a fresh decline from the $102,500 resistance zone.
  • The price is trading below $100,000 and the 100 hourly Simple moving average.
  • There was a break below a connecting bullish trend line with support at $98,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could start another increase if it stays above the $95,500 support zone.

Bitcoin Price Dips Below $100K

The price of Bitcoin initiated a noticeable surge surpassing the $98,500 barrier. This digital currency managed to scale beyond the resistance at $99,200 and $100,000. Yet, it couldn’t manage to break through the $102,500 resistance mark.

A significant peak appeared at $102,759, marking the beginning of a downward trend. The price clearly dropped below the $100,000 level, which previously served as a strong support. Furthermore, there was a fall below a bullish trend line with a base at $98,500 on the hourly chart for Bitcoin-to-USD (BTC/USD) pair.

The duo dipped beneath ninety-six thousand five hundred dollars. A minimum was reached at ninety-six thousand one hundred dollars, and currently, the value is stabilizing with losses below the 23.6% Fibonacci retracement level of the recent drop from the peak of ten-two thousand seven hundred fifty-nine dollars to the trough of ninety-six thousand one hundred dollars.

As an analyst, I’m observing that Bitcoin’s current trading price hovers below the $98,500 mark and dips slightly below the 100-hour Simple Moving Average. Looking ahead, there are a few key levels to watch. Immediately above the current price, there seems to be resistance near $97,500. The first major resistance is at $98,500. A decisive break above this level could potentially drive the price upward.

The potential next barrier for upward movement may be around $99,500 or the 50% Fibonacci retracement point of the recent drop from the peak of $102,759 to its low at $96,100. If the price manages to surpass this resistance at $99,500, it could continue climbing and reach the resistance level of $102,500. Any further growth might push the price toward $104,000.

Another Drop In BTC?

Should Bitcoin not surpass the $97,500 barrier, there’s a possibility that it might initiate a downward trend. The lowest point of potential support would be around $96,500.

As a crypto investor, I’m closely watching the market, and it seems that the first significant support for my assets lies around the $96,100 mark. Should the situation worsen, the next level of support can be found near the $95,550 zone. If losses continue beyond this point, we might see the price trending towards the nearby $93,500 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 – $96,500, followed by $95,500.

Major Resistance Levels – $97,500 and $98,500.

Read More

2025-01-08 06:05