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Bitcoin has faced a challenging start to 2025 with a rejection at the $100,000 mark. Notably, Bitcoin has failed to sustain substantially above the $100,000 price level since it first broke in early December, and multiple breakouts have been followed by rejections. The most recent rejection came last week, when the price reached a high of $102,000 on Monday, only to reverse sharply and fall to $92,000 on Thursday.
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This continuous tug-of-war has highlighted the bearish case for BTC, with technical analysis. highlighting a 50/50 probability of a new fall or a rebound.
$90,000: A Fundamental Support Zone Under Threat
Recent Bitcoin price action has significantly placed the price of $90,000 as the most notable support level for the bulls. Although the cryptocurrency has largely remained above the $90,000 support level even during the recent corrections, the bearish outlook depends on its ability to defend this level.
According technical analysis by Crypto analyst EGRAG CRYPTO, Bitcoin has made five different attempts to test a support trendline around $90,000, further revealing the importance of the level. This repeated retest increases the possibility of weakening support strength and gradually makes Bitcoin more vulnerable to a sharp decline.
With this in mind, the main task for Bitcoin bulls would be to hold above $90,000 and break the resistance levels above $100,000 to invalidate a bearish outlook. If Bitcoin were to fall below $90,000, it could cause a further price drop to the $87,000 range or even lower. A drop below $87,000 could, in turn, trigger a rapid decline across a $12,000 gap until reaching $75,000.
Resistance Levels to Break: $103,000 to $108,500
As noted by EGRAG CRYPTO, Bitcoin could continue to pose a bearish threat until it closes above some resistance levels. These resistance levels are situated at $103,000, $106,400 and $108,500, and consistent daily closes above these thresholds are required to confirm an uptrend. The third resistance at $108,500 is the most notable, as a break above it would see Bitcoin trade to new all-time highs.
According to EGRAG CRYPTO, current technical indicators suggest that the chances of a pump occurring are low at this time. For example, Bitcoin has now lost the 21 EMA support on the daily candlestick time frame, and Sentiment is now in a neutral zone. in the Fear and Greed Index.
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As things stand, the most important factor that could be seen Bullish Momentum Returns to Bitcoin is Donald Trump’s next inauguration on January 20 and the early cryptopositive policies than during the new administration. EGRAG CRYPTO notes that the event could trigger a short-term rally or exacerbate the ongoing decline. At the time of writing, Bitcoin is trading at $94,400.
Featured image from Pexels, chart from TradingView
