Bitcoin traders who leverage technical analysis have been monitoring important levels of support and resistance, singling out $100,000 in particular as being psychologically significant.
The world’s most prominent digital currency appears to be following a downward trend since reaching an all-time high of more than $108,000 on December 17, Coinbase data from TradingView reveals.
On Monday, December 30, the cryptocurrency fell below $91,500, reaching its lowest level since late November, additional Coinbase figures show.
In spite of this recent price activity, bitcoin is still in a strong, upward trend that has propelled it to multiple fresh, all-time highs over the last several months.
Several analysts have noted this strong performance, including the TikTok influencer who goes by Wendy O.
The market observer emphasized such developments in emailed comments, stating that “We are still in a crypto bull market, even though it feels a bit different than previous cycles and we will see a lot of bullish price action in the crypto markets, primarily with Bitcoin.”
“Closing 2024 Bitcoin is currently in a downtrend on the daily chart since hitting all-time high of $108,000 on 12/17/2024,” she noted.
“I’m personally watching psychological levels like $100,000 and $90,000. These areas are important as most are not trading full-time and passive investors,” Wendy O clarified. “Those numbers spark excitement.”
“When we look at $100,000 as resistance, it seems to be an area the masses may see as a good value to sell, and that could also be why we have been in a downtrend since hitting all-time high of $108,000,” she stated.
Further, the analyst emphasized the strong institutional demand stemming from both BlackRock and MicroStrategy, and noted that as countries grow increasingly interested in using bitcoin as a strategic reserve, the digital asset’s price could easily push higher.
Joe DiPasquale, CEO of cryptocurrency hedge fund manager BitBull Capital, also weighed in, highlighting several technical levels.
“On the downside, support could emerge around the $85,000–$86,000 zone, followed by the $80,000 level, and deeper at $75,000 if the market continues to decline,” he noted via emailed comments.
“On the upside, resistance is likely to be encountered near $95,000–$96,000, with the $100,000 mark acting as a significant psychological barrier,” said DiPasquale.
“If Bitcoin manages to break above $100,000, the $105,000 area could become the next key resistance level,” he pointed out.
“Traders should also monitor volume around these levels to gauge the strength of any price action, 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, offered a different point of view.
“Bitcoin has been truly range-bound, while showing more action to the downside, since December 20, three days after the most recent ATH,” he stated via email.
“Counting today, it’s bounced off the $92k area three times. That level is also the bottom of a channel which started in November 2022, which has provided major support in the past (although not without fail),” said Enneking.
“If $90k breaks, and the odds are about even that it will, there is some support of $88k, but the next bottom will probably be lower (although almost certainly still with an ‘8’ handle),” he stated.
“By the time that plays out, inauguration euphoria will probably kick in with Bitcoiners licking their chops at the prospect of a pro-crypto administration and BTC turning into a reserve asset (N.B. Not a reserve currency) – and BTC will be primed for the next ATH,” Enneking predicted.
Disclosure: I own some bitcoin, bitcoin cash, litecoin, ether, EOS and SOL.
