Will the Bitcoin (BTC) price sustain above $90K as the resistance trendline dominates the price chart?
Bitcoin’s price faces bearish pressure, with a breakdown below $93,000, marking a 1.12% drop in the past 24 hours. The CMC Fear and Greed Index has declined to 48, reflecting growing uncertainty among investors.
As BTC struggles to surpass key resistance levels, technical indicators suggest potential downside risks, while analysts remain divided on the possibility of a bullish rebound.
Bitcoin Price Analysis
Respecting the long-coming resistance trend line in the 4-hour chart, the BTC price continues a bearish trend. As expected in our last article, the crucial support level at $92,750 failed to absorb the incoming supply.
The breakdown rally almost reached the $90,000 level as predicted, making a low of $91,315. With the lower price rejections, the BTC price experienced an early reversal from the estimated target of $90,742.
However, the bullish recovery to $92,748 failed to surpass the 20-EMA line and the resistance trendline. This led to a quick pullback below the $93,000 mark.
Currently, Bitcoin is trading at $92,748, with a minor recovery of 0.43% in the past 4 hours. The 4-hour RSI line shows a quick turnaround from the oversold region, suggesting a possibility of sideways continuation.
The consolidation range is expected to respect the $90,742 support zone while struggling to break through the resistance trendline.
Fidelity Leads the Outflow Pack on December 30
As the market experiences a pullback, institutional support for Bitcoin declines. On December 30, the daily total net inflow of the U.S. spot Bitcoin ETF registered an outflow of $426.13 million.
Bitcoin ETFs
Leading the bearish pack, Fidelity saw an outflow of $154.64 million, followed by Grayscale with an exit of $134.5 million.
BTC Price Targets
With the new year on the horizon, growing bullish anticipation may push Bitcoin above the resistance trendline.
In this case, the BTC price could reach the immediate resistance level of $95,119. This is extremely close to the dynamic average line of the 50-EMA.
On a side note, the 50-EMA has generated a death cross with the 200-EMA, signaling a potential sell-off. Furthermore, the declining 100-EMA is approaching the 200-EMA for another bearish crossover event.
On the bearish front, a breakdown below $90,742 would open the door to the next support level at $86,707.
Analyst Lights Hope for 2025
Despite multiple sell signals, independent analyst Ali Martinez has highlighted a massive potential for growth in Bitcoin.
Finding a correlation between the monthly RSI in previous market peaks and the Bitcoin Liquid Index, Martinez expects the BTC price trend to continue its bullish trajectory.
In previous bull market peaks, the monthly RSI reached 92 before the start of the next bear market. Currently, the monthly RSI line sits at 75, suggesting that the ongoing bull run has more fuel left than the bears anticipate.
Alis comment on Bitcoin RSI
Conclusion
The Bitcoin (BTC) price trend struggles under bearish pressure as technical indicators like the death cross and declining EMAs signal a continued downtrend.
However, with RSI recovering from oversold levels and analysts suggesting more room for growth, a bullish breakout remains possible, targeting the $95,119 resistance level.
