Bitcoin has had a challenging start to the year 2025, facing a rejection at the $100,000 mark. Despite multiple attempts to break through this significant price level, Bitcoin has struggled to maintain its position above $100,000 since early December. The most recent rejection occurred last week when the price peaked at $102,000 on Monday, only to sharply reverse and drop to $92,000 by Thursday.
This ongoing struggle has brought the bearish case for Bitcoin into sharper focus, with technical analysis indicating a 50/50 chance of either a further drop or a bounce. The $90,000 price point has emerged as a pivotal support zone for Bitcoin, with recent price action highlighting its importance for bulls. While Bitcoin has managed to hold above $90,000 during recent corrections, the bearish outlook hinges on its ability to defend this level.
According to technical analysis by crypto analyst EGRAG CRYPTO, Bitcoin has made repeated attempts to test a support trendline around $90,000, increasing the likelihood of weakening the support strength and making Bitcoin more vulnerable to a sharp decline. To invalidate the bearish outlook, Bitcoin bulls must hold above $90,000 and break resistance levels above $100,000. However, a drop below $90,000 could lead to a further decline to the $87,000 range or even lower, potentially reaching $75,000.
Resistance levels at $103,000, $106,400, and $108,500 are crucial for Bitcoin to break to confirm a bullish trend. Daily closes above these thresholds are needed for a sustained upward movement, with the $108,500 resistance level being the most significant as it could push Bitcoin to new all-time highs.
Current technical indicators suggest that the likelihood of a pump in Bitcoin is low at the moment. Bitcoin has lost the support of the 21 EMA on the daily candlestick timeframe, and sentiment is neutral on the Fear and Greed Index. The upcoming inauguration of Donald Trump on January 20th and the anticipated crypto-positive policies under the new administration could potentially bring back bullish momentum to Bitcoin or exacerbate the ongoing decline.
At the time of writing, Bitcoin is trading at $94,400. As the market continues to navigate these key levels and indicators, the future direction of Bitcoin remains uncertain. Stay tuned for further developments in the cryptocurrency market.
Featured image from Pexels, chart from TradingView.