An analyst has identified key Bitcoin resistance levels for a significant upsurge as the asset bounces off the 21-day Exponential Moving Average (EMA).
Over the weekend, Bitcoin remained relatively stable, fluctuating within a narrow range of $94,000 to $95,000. As of the latest data, Bitcoin’s price is $94,173, reflecting a 5.31% drop in the last week.
While Bitcoin’s market capitalization holds at $1.864 trillion, its dominance has slipped to 54.2%. This modest decrease suggests a slight shift in investor preference towards alternative cryptos.
Amidst this calm, analyst Egrag assessed critical levels and potential future movements for the leading crypto. A key indicator in the analysis is the 21-day EMA dynamic support in the 3-day timeframe. Historically, Bitcoin has tended to bounce off this level, signaling potential price rebounds.
Accordingly, the analyst pointed to resistance levels at $103,000, $106,400, and $108,500 as potential next targets for Bitcoin. He stressed that a break above these levels could signal bullish momentum. In particular, Egrag noted that a close above $108,500 would be the ultimate bull signal for Bitcoin.
#BTC: 3 Daily TF Bounces from 21 EMA – #Bullish: #BTC Outlook ! The key resistance levels to watch:
👉Resistance Levels:
1⃣Resistance 1: 💪 A close above $103K is a strong bullish signal!
2⃣Resistance 2: 🌟 A close above $106.4K would be even more bullish!
3⃣Resistance 3: 🚀… pic.twitter.com/3dXK2gxoxW— EGRAG CRYPTO (@egragcrypto) January 12, 2025
Concerns About CME Gap
While optimism surrounds potential resistance breakouts, concerns remain about a CME gap between $80,500 and $77,500. The analyst highlights this gap as a potential bearish target should Bitcoin face a downturn.
Historically, gaps in the futures market often attract price action, creating opportunities for filling these levels. With Bitcoin around $94K, a correction from this level could lead to declines exceeding 18% if the price possibly declines below the $77,500 range.
Veteran Market Analyst Weighs In
Veteran market analyst Peter Brandt has also provided insights, noting Bitcoin’s historical volatility and unpredictable chart patterns.
Brandt points to a possible Head and Shoulders (H&S) formation on the daily chart, which could suggest a decline to $73,000. However, he cautions against placing too much weight on this pattern, as Bitcoin’s charts often evolve into new formations, making them unreliable for precise predictions.
Bearish Levels to Watch for Bitcoin
Adding to the bearish concerns, analytics firm Glassnode pinpointed $88,000 as a critical price level for Bitcoin on Thursday. This figure represents the cost basis for short-term holders, who may sell as prices approach this range.
Given the lack of strong support below, the firm emphasizes that a sell-off at this level could trigger significant price declines.
According to Glassnode’s UTXO Realized Price Distribution, the next major support level appears near $73,000. This perspective aligns with the views of another market expert, who described the area below $92,000 as “free fall territory.”
