Rejection At $100k Increases Likelihood Of A Breakdown
Bitcoin has been facing A challenging start to 2025 and was rejected at the $100,000 mark. Notably, Bitcoin has been unable to sustain significant gains above the $100,000 price level since its first breakout in early December, and has been rejected on multiple occasions. The most recent rejection occurred last week, when prices peaked at $102,000 on Monday, only to reverse sharply and drop to $92,000 by Thursday.
Related reading
This ongoing tug-of-war makes Bitcoin’s bearish case even more compelling, technical analysis Emphasize 50/50 chance further decline or rebound.
$90,000: Key support area under threat
Recent Bitcoin price action has placed the $90,000 price point significantly most significant level of support For the Bulls. Although the cryptocurrency has largely remained above the $90,000 support even during the recent correction, the bearish outlook hinges on its ability to defend this level.
according to technical analysis Cryptocurrency analyst EGRAG CRYPTO said that Bitcoin has made five different attempts to test the support trend line around $90,000, which further reveals the importance of this level. This repeated retest increases the chances of support weakening and gradually makes Bitcoin more vulnerable to significant declines.
With this in mind, the main task for Bitcoin bulls is to hold above $90,000 and break the resistance above $100,000 to invalidate the bearish outlook. If Bitcoin falls below $90,000, the price could fall further to $87,000 or even lower. A break below $87,000 could in turn lead to a rapid decline Passing the $12,000 Gap to $75,000.
Resistance levels to break: $103,000 to $108,500
As EGRAG CRYPTO points out, Bitcoin may continue to pose a bearish threat until a close above several resistance levels. These resistance levels are located at $103,000, $106,400, and $108,500, and daily closes must be sustained above these thresholds to confirm the bullish trend. The third resistance level at $108,500 is the most noteworthy, a break above which would see Bitcoin trade to new all-time highs.
According to EGRAG CRYPTO, current technical indicators indicate that the likelihood of a move higher is currently low. For example, Bitcoin has now lost support from the 21 EMA on the daily candlestick time frame, and Market sentiment is currently in neutral territory About the Fear and Greed Index.
Related reading
As far as the current situation is concerned, the biggest factor that can be seen is Bitcoin Bullish Momentum Returns Donald Trump will be inaugurated on January 20th, Anticipated Crypto Positive Policy during the new government. EGRAG CRYPTO noted that the event could trigger a short-term rebound or exacerbate a sustained decline. As of this writing, Bitcoin is trading at $94,400.
Featured images from Pexels, charts from TradingView
