Bitcoin’s Future at Risk: Could It Plunge Below $100,000?

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The surge of Bitcoin surpassing $100,000 has kept the market in suspense, as investors strive to create a fresh price range beyond this threshold. This upward trend has sparked considerable market turbulence within the last day, causing Bitcoin’s value to oscillate between roughly $99,701 and $106,307 during that timeframe.

The big fluctuations in Bitcoin’s value have recently pushed it past a significant resistance point that had been limiting its growth for a month. However, Bitcoin is still approaching the upper limit of $106,000, and if it gets rejected there, it might cause a drop, possibly taking the price down to around $91,000.

Bitcoin Successfully Closes Above Confluent Resistance

Based on the analysis by crypto expert Rekt Capital, Bitcoin has successfully ended the day above a significant combined resistance point. This was highlighted in an analysis shared on social media platform X and underscores an important milestone in Bitcoin’s price surge. The combined resistance is formed by two crucial factors: a horizontal resistance line at $101,165 and a downward trendline that has been consistently marking lower peaks since Bitcoin hit its all-time high of $108,135 on December 18, 2024.

After leaving the meeting point, Bitcoin has been advancing towards $106,000. However, certain patterns in its price movements, known as candlestick formations, are indicating a possible decrease in speed. For instance, Bitcoin recently formed a hammer and doji candlestick on consecutive days, which historically suggest a potential slowdown or market uncertainty. This could mean that the current bullish trend may be weakening, and there might be an upcoming drop to revisit the area it just exited from.

BTC Needs To Hold Above This Level

Keeping a stronghold over the convergence zone where multiple resistance lines meet is essential for predicting Bitcoin’s next direction, as Rekt Capital pointed out. If there’s consistent pushback at the $106,000 level, it may trigger a drop to re-examine the convergence area marked by the green circle in the chart above.

If Bitcoin returns to this region, two possible situations might occur. The first, which leans more towards optimism, would be a successful retest leading to a bounce back at the convergence point. This pattern often follows after a breakout, as a retreat strengthens the newly established support and provides the price with the necessary momentum for another bullish surge.

On the contrary, the second situation appears to be more pessimistic. If Bitcoin cannot maintain its position above the combined support level, it might encounter heightened selling activity which could lead to a more significant downturn.

Based on Rekt Capital’s study, two key levels of potential support to keep an eye on are approximately $91,070 and $87,325. If there’s a significant drop to these points, it could indicate a substantial correction in the market, potentially altering short-term outlooks.

Bitcoin is currently trading at $106,100.

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2025-01-20 19:16