Key Insights
- The bears have forced Bitcoin into a retest of its $100,000 support accordig to the charts.
- The cryptocurrency remains in a range between the $100,000 and $101,000 price level.
- If a break below $100,000 occurs, Bitcoin could crash further down to $90,000 or even $80,000.
- If Bitcoin does rebound, it might have to break above $110,000 to access the $115,000 or $120,000 price levels.
Bitcoin is standing at the forefront of the market’s movement, especially as its price continues to flirt with the $100,000 mark.
According to recent trading sessions, key levels of support and resistance are starting to emerge.
These levels are poised to play a hand-in-hand role with broader economic factors, and here is a breakdown of what’s been going on with the flagship cryptocurrency.
Bitcoin Price Fluctuates Around Key Levels
According to the charts, Bitcoin’s performance is currently choppy, and is hovering between the $100,000 and $110,000 range.
This shows that the cryptocurrency is in a consolidation phase, where the buyers and sellers are waiting for a breakout in either direction.
According to the charts, Bitcoin has found support around the psychological $100,000 zone.
This level previously acted as resistance, and should be effective at holding Bitcoin up in the meantime.
On the flipside, Bitcoin is facing resistance somewhere around the $110,000 mark, which could be the gateway to $115,000 or even $120,000.
Despite the ongoing pullback though, Bitcoin is still bullish, and investors are taking advantage of the ongoing dip.
The RSI on the daily chart shows that the cryptocurrency is still in bullish territory despite the ongoing consolidation, with a current reading of 65.
This is despite the incoming bearish crossover between the MACD and RSI signal line, which indicates that Bitcoin could crash further down to the $90,000 zone if a break below $100,000 occurs.
Notably, if this $90,000 zone gives way as well, the resulting crash could take Bitcoin further down to a retest of its 200-day EMA around $80,000.
Incoming Factors Could Help Bitcoin
Judging by the cryptocurrency’s ongoing price action, it seems to be “digesting” its previous gains, in preparation for its next move.
The ongoing consolidation might be a healthy one, considering how the market needs time to stabilize before a breakout.
According to data from CoinMarketCap, trading volumes on Bitcoin have increased slightly over the last 24 hours, even as Bitcoin struggles around $100,000.
This shows that traders are cautiously optimistic.
Ultimately, major news this week or institutional investments could be what Bitcoin needs to jump upwards and continue its bullish trend.
The ETF market for example, attracted over $1 billion in net inflows between 21 and 22 January, with BlackRock’s IBIT alone accounting for more than $660 million.
Other companies like Rumble Inc., and Japan’s Metaplanet have also begun adding Bitcoin to their corporate treasuries, and could kickstart another move to the upside.
In other news, the Federal Open Market Committee (FOMC) meeting on January 28–29 is expected to bring in changes, whether positive or negative.
Analysts generally believe that rate cuts are unlikely, but any indication of QE could act as a bullish trigger for the cryptocurrency.