Bitcoin’s beginning to 2025 hasn’t been smooth sailing. It’s repeatedly failed to stay above $100,000.
Repeated Rejections Near $100,000
Since its initial breakthrough in early December, Bitcoin has struggled to hold above the $100,000 mark. Several attempts to break through have ended in sharp reversals. The latest example? A peak at $102,000 last week, followed by a quick drop to $92,000. This back-and-forth action is fueling a bearish outlook for many analysts. Technical analysis suggests a roughly 50/50 chance of either a further price drop or a rebound.
$90,000: A Crucial Support Level
The $90,000 price point is now a major support level for Bitcoin. While it’s held above this level so far, its ability to do so is crucial. Analyst EGRAG CRYPTO points out that Bitcoin has tested this support line five times, weakening it and increasing the risk of a significant drop.
Holding Above $90,000: The Bulls’ Challenge
For Bitcoin bulls to change the narrative, they need to see the price stay above $90,000 and break through the resistance levels above $100,000. Failure to hold $90,000 could trigger a cascade down to $87,000 or even lower, potentially leading to a sharp drop to the $75,000 range.
Resistance Levels to Watch: $103,000 – $108,500
EGRAG CRYPTO highlights key resistance levels at $103,000, $106,400, and $108,500. Consistent closes above these levels would signal a bullish trend. Breaking through the highest resistance, $108,500, would send Bitcoin to new all-time highs.
Current Indicators and Trump’s Inauguration
Currently, technical indicators aren’t very bullish. Bitcoin has lost support from the 21-day EMA, and sentiment is neutral. A wildcard? Donald Trump’s inauguration on January 20th. His potential crypto-friendly policies could either spark a short-term rally or worsen the current decline.
Current Price and Outlook
At the time of writing, Bitcoin is trading around $94,400. The overall outlook remains uncertain, with the $90,000 support level playing a critical role in determining Bitcoin’s near-term direction.
