Rejection at $100k Raises the Chances of a Breakdown

Bitcoin Bears Eye Key Support Level With Resistance at $100K Holding Firm

Bitcoin is facing a challenging start to 2025 as it struggles to maintain momentum above the $100,000 resistance level. After initially breaking past $100,000 in early December, the cryptocurrency has experienced repeated rejections. The latest instance saw Bitcoin touch $102,000 on Monday, only to sharply decline to $92,000 by Thursday. This continued price action highlights increasing concerns over a bearish outlook for the leading cryptocurrency.

The $90K Support Level: Pivotal for Bitcoin

Bitcoin bulls are closely monitoring the critical $90,000 support level, which has held firm during recent corrections. However, repeated retests of this level are raising concerns about its long-term strength. Technical analysts emphasize that Bitcoin has tested the $90,000 zone five times in recent months, which could weaken its durability as a support level.

Should Bitcoin break below $90,000, the cryptocurrency risks cascading further to $87,000. A drop below this threshold could open the door to a rapid decline, potentially falling through a $12,000 gap to the $75,000 range.

Resistance Levels to Watch

For bullish momentum to return, Bitcoin must decisively break above a series of resistance levels. Key targets include $103,000, $106,400, and $108,500, with the latter being the most significant marker. A breakout and daily closes above $108,500 would likely propel Bitcoin toward new all-time highs.

Currently, technical indicators suggest a bearish sentiment, with Bitcoin failing to maintain support above the 21 EMA on the daily timeframe. The Fear and Greed Index also sits in a neutral zone, reflecting uncertainty in the market.

External Factors in Focus

The cryptocurrency market is closely watching external developments that could influence Bitcoin’s price trajectory. The upcoming inauguration of Donald Trump on January 20th is a key event, as many anticipate crypto-positive policies under the new administration. This may trigger a short-term rally or exacerbate the ongoing decline, depending on how the market reacts to any policy announcements.

Current Market Standing

At the time of writing, Bitcoin is trading at $94,400. To regain bullish momentum, bulls must defend the $90,000 support level and push beyond the crucial resistance zones outlined above.

Key Takeaway for Investors: Keep a close eye on the $90,000 support level and the $103,000 to $108,500 resistance zones. A strong bounce above resistance levels could signal bullish recovery, while a sustained break below $90,000 might confirm a bearish pattern.

Image credit: Pexels | Chart Source: Trading Metrics

Disclaimer: This content is for informational purposes only and should not be considered financial advice. Always do your own research before making investment decisions.