KEY INSIGHTS
- Confirmation of resistance at $99,554 and $102,802.9: These levels have functioned as resistance zones, and a downward trend was observed after prices failed to break through.
- Support role of the 50-day moving average on the daily chart: The 50-day moving average continues to act as a support line in the current price movements.
- Potential double bottom formation near $92,654.5: If this price level holds as support, there are indications that a range-bound market may develop.
Introduction
Focus and Review of the Previous Article
The previous analysis highlighted a post-peak adjustment phase in the Bitcoin market, with particular attention on the resistance levels at $99,554 and $102,802.9. These levels were confirmed as resistance, and a price downturn followed.
Price Review & Summary of Last Week’s Analysis
On December 24 and 26, the $99,554 level was tested, but after briefly breaking above, the price closed with upper wicks, demonstrating the strength of this resistance level. Although the 50-day moving average currently supports the price, a break below could shift focus to support levels at $92,654.5, $85,153.0, and $73,563.5.
Market Analysis & Price Action
Bitcoin failed to surpass the resistance levels at $99,554 and $102,802.9, seemingly transitioning into a downward trend. Currently, the 50-day moving average acts as support, while a support test near $92,654.5 is underway. In the short term, price action around this level may indicate the next market direction.
Detailed Analysis
Daily Chart: Key Price Levels
The 50-day moving average (approximately $93,200) appears to be functioning as a support line.
Should the 50-day moving average be breached, the following three support levels may become the next points of interest:
- $92,654.5
- $85,153.0
- $73,563.5
4-Hour Chart: Key Price Levels
A double bottom formation is being tested near the recent low of $92,654.5.
If this level holds as support, there is a possibility of a range-bound market forming between $92,654.5 and $99,554.
Conclusion
The Bitcoin market continues to focus on the resistance levels of $99,554 and $102,802.9, which have acted as significant barriers, leading to a downward price movement. In the short term, attention is on the 50-day moving average as a key support level, with price action near $92,654.5 potentially determining the next trend.
Beginner Friendly Glossary
Bitcoin: A decentralized digital currency enabling peer-to-peer transactions without intermediaries, operating on a blockchain network.
Learn more here.Resistance Levels: Price points where an asset’s upward movement is hindered due to increased selling interest.
Learn more here.Support Levels: Price points where a downtrend is expected to pause due to a concentration of buying interest.
Learn more here.50-Day Moving Average: An average of an asset’s closing prices over the past 50 days, used to identify trends and potential support or resistance levels.
Learn more here.Double Bottom: A bullish reversal pattern indicating a shift from a downtrend to an uptrend, characterized by two distinct lows at approximately the same price level.
Learn more here.Range-Bound Market: A market condition where an asset’s price fluctuates within a specific range, bounded by support and resistance levels, without trending in a particular direction.
Learn more here.Upper Wick: The vertical line above a candlestick’s body on a price chart, representing the highest price reached during the trading period.
Learn more here.
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