Bitcoin traders are watching multiple technical levels. (Photo illustration by Chesnot/Getty Images)
Bitcoin traders using technical analysis have been monitoring key support and resistance levels, particularly highlighting $100,000 as psychologically significant.
The world’s most popular digital currency appears to be following a downward trend since hitting an all-time high of more than $108,000 on December 17, Coinbase data from TradingView shows.
On Monday, December 30, the cryptocurrency fell below $91,500, hitting its lowest level since late November, additional figures from Coinbase show.
Despite this recent price activity, Bitcoin is still in a strong uptrend that has seen it reach several new all-time highs in recent months.
Several analysts have noted this strong performance, including TikTok influencer Wendy O.
Highlighting such developments in email comments, the market watcher stated: “We are still in a crypto bull market, even if it feels a little different than previous cycles and we will see a lot of bullish price action in the crypto markets, especially in Bitcoin.” .”
“Bitcoin is currently in a downtrend at year-end 2024 on the daily chart since reaching an all-time high of $108,000 on 12/17/2024,” she noted.
“I personally monitor psychological levels like $100,000 and $90,000. These areas are important because most do not trade full-time and are passive investors,” Wendy O clarified. “These numbers are causing excitement.”
“If we look at $100,000 as resistance, this seems like an area that the masses could see as a good sell and that could also be why we have been moving higher since hitting the all-time high of $108,000 are in a downward trend,” she explained.
Additionally, the analyst highlighted the strong institutional demand coming from both BlackRock and MicroStrategy, noting that the digital asset’s price could rise slightly as countries become increasingly interested in using Bitcoin as a strategic reserve.
Joe DiPasquale, CEO of cryptocurrency hedge fund manager BitBull Capital, also weighed in and pointed out several technical aspects.
“On the other hand, support could emerge in the $85,000-86,000 area, followed by the $80,000 level and lower at $75,000 if the market continues lower,” he noted in an emailed statement Comments.
“On the upside, resistance is likely to be found near $95,000-$96,000, with the $100,000 level acting as a significant psychological barrier,” DiPasquale said.
“If Bitcoin manages to break above $100,000, the $105,000 area could become the next key resistance level,” he emphasized.
“Traders should also monitor volume near these levels to assess the strength of any price moves, while broader macroeconomic factors and sentiment will play a crucial role in shaping Bitcoin’s medium to long-term direction,” the analyst emphasized.
Tim Enneking, managing partner of Psalion, took a different point of view.
“Since December 20th, three days after the last peak, Bitcoin has been really range-bound while showing more downside,” he explained via email.
“As of today, it has bounced off the $92,000 area three times. This level is also the bottom of a channel that began in November 2022 and has provided great support in the past (although not always),” Enneking said.
“If $90,000 is broken, and the odds of that are roughly even, there is some support at $88,000, but the next bottom will likely be lower (although almost certainly still at an ‘8’ brand),” he explained.
“By then, opening euphoria will likely set in and Bitcoiners will fret over the prospect of a pro-crypto government and BTC becoming a reserve asset (NB: not a reserve currency) – and BTC will be prepared for the next ATH “, predicted Enneking.
Disclosure: I own Bitcoin, Bitcoin Cash, Litecoin, Ether, EOS and SOL.
