Bitcoin traders are monitoring key technical levels including $100,000

Bitcoin traders making use of technical analysis have been monitoring important levels of support and resistance, citing $100,000 in particular as psychologically significant.

The world’s most prominent digital currency appears to be following a downward trend since it reached an all-time high of over $108,000 on December 17. Coinbase data from TradingView reveals.

On Monday, December 30, the cryptocurrency fell below $91,500, hitting its lowest level since late November, additional Coinbase numbers show.

Despite this recent price activity, Bitcoin remains in a strong upward trend that has pushed it to new all-time highs over the past few months.

This strong performance was noted by several analysts, including a TikTok influencer known as Wendy O.

The market watcher underscored such developments in emailed comments, saying: “We are still in a bullish crypto market, although it looks a bit different from previous cycles and we will see a lot of bullish price movement in the crypto markets, especially with Cryptocurrency. “Bitcoin.” “.

“Closing out 2024, Bitcoin is currently witnessing a downward trend on the daily chart since it reached an all-time high of $108,000 on 12/17/2024,” she noted.

“I personally watch psychological levels like $100,000 and $90,000. These areas are important because most are not full-time traders and passive investors,” Wendy O explained. “These numbers are exciting.”

“When we look at the $100,000 level as resistance, it appears to be an area that fans might consider a good value to sell, and this could also be why we have been in a downtrend since we hit the all-time high at $108,000,” she said. .

Furthermore, the analyst emphasized the strong institutional demand emerging from both BlackRock and MicroStrategy, and noted that as countries become more interested in using Bitcoin as a strategic reserve, the price of the digital asset could easily rise.

Joe DePasquale, CEO of Cryptocurrency Hedge Fund Manager Pitbull Capitalwas also weighed, highlighting several technical levels.

“On the downside, support could emerge around the $85,000-$86,000 area, followed by the $80,000 level, and deeper at $75,000 if the market continues to decline,” he noted via email comments.

“On the upside, you are likely to face resistance near $95,000-$96,000, with the $100,000 mark acting as a major psychological barrier,” DePasquale said.

“If Bitcoin can break above the $100,000 level, the $105,000 area could become the next major resistance level,” he noted.

“Traders should also monitor volume around these levels to gauge the strength of any price movement, while broader macroeconomic factors and sentiment will play a crucial role in shaping Bitcoin’s medium-to-long-term trend,” the analyst stressed.

Tim Enneking, Managing Partner of psalmoffered a different point of view.

“Bitcoin has been really range bound, while showing more movement to the downside, since December 20, three days after the most recent ATH,” he stated via email.

“Depending on the day, it has bounced from the $92,000 area three times. This level is also the bottom of the channel that started in November 2022, which has provided significant support in the past (although not without failure),” Enking said.

“If it breaks $90,000, and the odds are roughly equal, there is some support at $88,000, but the next bottom will likely be lower (although it is almost certainly still an ‘8’ handle),” he said.

“By the time that is done, the inauguration euphoria will likely set in with Bitcoin users licking their chops at the prospect of a pro-crypto administration and BTC turning into a reserve asset (NB is not a reserve currency) – and BTC will be set up for ‘next ATH’ trading,” Enneking predicted. .

Disclosure: I own some Bitcoin, Bitcoin Cash, Litecoin, Ether, EOS, and SOL.