Bitcoin (BTC) finds itself under bearish scrutiny, testing key support levels and attempting to regain upward momentum. Currently trading at $92,748, BTC has dropped by 1.12% in the past 24 hours, facing challenges at the $93,000 mark.
Despite these hurdles, analysts and technical indicators offer mixed signals, leaving the market divided on the potential for a bullish rebound.
Support
Bitcoin’s recent price action has tested the $90,742 support level, with minor rebounds showing early signs of recovery. While the consolidation range respects this support, the persistent resistance trendline continues to exert downward pressure.
The lower price rejection near $91,315 highlights buyers stepping in at critical levels, suggesting the possibility of sideways movement in the short term. However, failure to hold above $90,742 could push BTC toward the next support level at $86,707.
Resistance
BTC’s attempts to break above the 20-EMA and the dominant resistance trendline have faced significant challenges. The current price of $92,748 marks a minor 0.43% recovery over the past four hours, but overcoming the immediate resistance at $95,119 remains a key hurdle.
Bearish Signals
Several bearish indicators weigh heavily on Bitcoin’s outlook:
- Death Cross Formation: The 50-EMA crossing below the 200-EMA signals potential sell-offs.
- Institutional Outflows: December 30 saw a massive outflow of $426.13 million from U.S. spot Bitcoin ETFs, with Fidelity and Grayscale leading the exits.
- RSI Trends: The 4-hour RSI suggests recovery from oversold levels but lacks a clear bullish divergence.
Potential Scenarios
| Scenario | Price Target | Key Support/Resistance |
|---|---|---|
| Bullish | $95,119 | Resistance trendline, $95K |
| Bearish | $86,707 | $90,742 support zone |
Bullish Hope
Despite bearish technical patterns, independent analyst Ali Martinez has shed light on long-term bullish potential. Martinez highlights Bitcoin’s monthly RSI, currently at 75, as a sign of an extended bull run. Historically, RSI has reached 92 during previous bull market peaks before entering bear territory, suggesting room for upward growth.
Market Dynamics
Institutional activity significantly impacts Bitcoin’s trajectory. The recent outflow of $426.13 million from Bitcoin ETFs reflects diminishing institutional support, which could hinder bullish recovery efforts.
On the flip side, any return of institutional confidence could catalyze a breakout above $95,119.
Bitcoin’s price movement remains a high-stakes game of resistance versus support. While bearish trends dominate the short-term outlook, bullish momentum may build if BTC sustains critical support levels and attracts fresh buying pressure.
The battle for $95,119 is far from over, and traders must watch for decisive moves in the coming days.
