Bitcoin is a A challenging start to 2025 With rejection at the $100,000 mark. In particular, Bitcoin has been unable to hold significantly above the $100,000 price level since its first breakout in early December, and several breakouts have been rejected. The most recent rejection came last week when the price hit $102,000 on Monday, only to quickly reverse and fall to $92,000 by Thursday.
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This constant back-and-forth has brought the bearish case for BTC into sharp focus, along with technical analysis. Highlighting the 50/50 chance Another drop or bounce.
$90,000: A major support area under threat
Recent Bitcoin price action has significantly placed the $90,000 price point The most important support level For the bulls. Although the crypto has held above the $90,000 support level even during the recent correction, the bearish outlook depends on its ability to defend this level.
Accordingly Technical analysis by Crypto analyst EGRAG CRYPTO, Bitcoin has made five separate attempts to test a support trendline around $90,000, indicating the importance of the level ahead. This frequent retesting increases the likelihood of undermining the strength of support and is gradually making Bitcoin more vulnerable to sharp declines.
With this in mind, the main task for Bitcoin bulls will be to hold above $90,000 and break the resistance levels above $100,000 to invalidate a bearish view. If Bitcoin falls below $90,000, it could head for further price declines to the $87,000 range or even lower. A drop below $87,000, in turn, could lead to a sharp decline Through the difference of $12,000 to reach $75,000.
Resistance levels to break: $103,000 to $108,500
As noted by EGRAG CRYPTO, Bitcoin may continue to pose a bearish threat until it closes above certain resistance levels. These resistance levels are located at $103,000, $106,400, and $108,500, and a sustained daily close above these thresholds is required to confirm a bullish trend. The third resistance at $108,500 is the most noteworthy, as a break above it would see Bitcoin trade at new all-time highs.
According to EGRAG CRYPTO, current technical indicators suggest that the possibility of a pump is low at this time. For example, Bitcoin has now lost the support of the 21 EMA on the daily candle time frame, and The feeling is now in a neutral zone On the fear and greed index.
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As it stands, the biggest factor that can see Fast returns in Bitcoin January 20th is the upcoming inauguration of Donald Trump and Anticipated crypto-positive policies that during the new administration. EGRAG CRYPTO notes that the event could either trigger a short-term rally or extend the ongoing decline. At the time of writing, Bitcoin is trading at $94,400.
Featured images from Pexels, charts from TradingView
