Bitcoin (BTC) Traders Are Watching These Key Technical Levels

BTC technical analysis has singled out $100,000 in particular as being psychologically significant.

Bitcoin technical analysis traders are eyeing several key levels of support and resistance, including $100,000, which is seen as a psychologically significant round number.

After reaching an all-time high of more than $108,000 on December 17, the world’s largest digital currency by market capitalization has been trending down, according to Coinbase data from TradingView.

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

Despite this recent price action, bitcoin is still in a strong uptrend that has seen it hit multiple fresh all-time highs over the last several months.

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

“We are still in a crypto bull market, even though it feels a bit different than previous cycles and we will see a lot of bullish price action in the crypto markets, primarily with Bitcoin,” the market observer noted in emailed comments to Axios.

“Closing 2024 Bitcoin is currently in a downtrend on the daily chart since hitting all-time high of $108,000 on 12/17/2024,” she observed.

“I’m personally watching psychological levels like $100,000 and $90,000. These areas are important as most are not trading full-time and passive investors. Those numbers spark excitement.”

“When we look at $100,000 as resistance, it seems to be an area the masses may see as a good value to sell, and that could also be why we have been in a downtrend since hitting all-time high of $108,000,” Wendy O told Axios.

What We Know About Jimmy Carter’s State Funeral Next Week

Tuesday’s NHL Winter Classic Returns To Wrigley Field After 16 Years

Today’s NYT Mini Crossword Clues And Answers For Tuesday, December 31st

Moreover, the analyst highlighted the strong institutional demand from both BlackRock and MicroStrategy, and noted that as countries grow interested in using bitcoin as a strategic reserve, the digital asset’s price could easily push higher.

Joe DiPasquale, CEO of cryptocurrency hedge fund manager BitBull Capital, also pointed out several technical levels.

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

“On the upside, resistance is likely to be encountered near $95,000–$96,000, with the $100,000 mark acting as a significant psychological barrier,” said DiPasquale.

“If Bitcoin manages to break above $100,000, the $105,000 area could become the next key resistance level,” he pointed out.

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

Tim Enneking, managing partner of Psalion, offered a different perspective.

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

“Counting today, it’s bounced off the $92k area three times. That level is also the bottom of a channel which started in November 2022, which has provided major support in the past (although not without fail).”

“If $90k breaks, and the odds are about even that it will, there is some support of $88k, but the next bottom will probably be lower (although almost certainly still with an ‘8’ handle),” said Enneking.

“By the time that plays out, inauguration euphoria will probably kick in with Bitcoiners licking their chops at the prospect of a pro-crypto administration and BTC turning into a reserve asset (N.B. Not a reserve currency) – and BTC will be primed for the next ATH,” Enneking predicted.

Disclosure: I own some bitcoin, bitcoin cash, litecoin, ether, EOS and SOL.