Bitcoin‘s uptrend resumed above the 100-period SMA and is currently testing the 61.8% Fibonacci retracement level. If BTC/USD stabilizes above the $101,900 resistance, the next bullish target could be $104,800.
Bitcoin Technical Analysis – 7-January-2025
FxNews—Bitcoin has been in a bull market, above the 50- and 100-period simple moving average, and has lost 11.0% since December 30, 2024. However, the buying pressure eased at $101,900, a resistance area backed by the 61.8% Fibonacci level.
As of this writing, the cryptocurrency trades at approximately $101,800, testing challenging the key Fibonacci level.
Regarding the technical indicators:
- The RSI 14 depicts 72 in the description and declining, meaning Bitcoin is overpriced.
- The Stochastic Oscillator shows 88 in the description, supporting RSI’s overbought signal.
- The Awesome Oscillator histogram is green, above zero, interpreted as a bullish market.
Overall, the technical indicators suggest that while the primary trend is Bullish, Bitcoin is overpriced and has the potential to consolidate near the lower support levels.
Bitcoin Challenges Key $101900 Resistance: What’s Next?
Bitcoin is overpriced, at least in the short term. Therefore, the market expects the prices to decrease before the uptrend resumes. Please be aware that going long in an overbought market comes with a significant risk. Therefore, we suggest traders and investors wait patiently for BTC/USD to consolidate near the lower support levels.
In this scenario, the 50.0% Fibonacci retracement level can provide a decent bid price to join the bull market. Hence, it is crucial to monitor this level for bullish signals, such as candlestick patterns.
Furthermore, if the %50.0 Fibonacci support level at $99,900 holds, Bitcoin will probably aim for the 78.6% Fibonacci level in its next bullish rally.
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The Bearish Scenario
The 50.0% Fibonacci support level at $99,900 divided the bull market from the bear market. From a technical perspective, the uptrend should be invalidated if BTC/USD falls below $99,900.
If this scenario unfolds, digital gold’s price can potentially drop to the 38.2% Fibonacci level at $97,800.
Bitcoin Support and Resistance Levels – 7-January-2025
Traders and investors should closely monitor the BTC/USD key levels below to make informed decisions and adjust their strategies accordingly as market conditions shift.
| Bitcoin Support and Resistance Levels – 7-January-2025 | |||
|---|---|---|---|
| Support | $99,900 | $97,800 | $95,350 |
| Resistance | $101,900 | $104,800 | $108,000 |