Cryptocurrency Investors Maintain Focus on Important Technical Thresholds, Encompassing the $100,000 Mark
Cryptocurrency Investors Maintain Focus on Important Technical Thresholds, Encompassing the $100,000 Mark
Bitcoin traders focusing on technical analysis have been noticing significant levels of support and resistance, with $100,000 being a particularly noteworthy psychological threshold.
Since reaching an all-time high of over $108,000 on December 17, data from Coinbase via TradingView indicates a predominant downward trend for the digital currency.
Monday, December 30, saw Bitcoin dip below $91,500, marking its lowest level since late November, as per additional Coinbase stats.
Despite recent price fluctuations, Bitcoin continues to maintain an overall upward trend that has seen it reach multiple new all-time highs over the past few months.
Various analysts have acknowledged this outstanding performance, including popular TikTok influencer Wendy O.
She highlighted such developments in her email comments, asserting, "We are still in a crypto bull market, even though it feels differently than past cycles and we'll witness a lot of bullish price action in the crypto markets, primarily with Bitcoin."
Wendy O also noted, "Currently, Bitcoin is in a downtrend on the daily chart since reaching an all-time high of $108,000 on 12/17/2024." She continued, "I'm personally paying attention to psychological levels like $100,000 and $90,000. These areas are significant as many traders are not full-time and passive investors; these numbers stir excitement."
She further explained that considering $100,000 as resistance, it could be an area where the masses might perceive it as a good selling opportunity, possibly causing the downtrend since hitting an all-time high of $108,000.
Wendy O also emphasized the growing institutional demand from organizations like BlackRock and MicroStrategy, and mentioned that as countries become increasingly interested in utilizing Bitcoin as a strategic reserve, the digital currency's price might readily escalate higher.
Joe DiPasquale, CEO of cryptocurrency hedge fund manager BitBull Capital, also shared his insights, pinpointing several technical levels.
He suggested that support could emerge around $85,000−$86,000 zone, followed by the $80,000 level, and even deeper at $75,000 if the market continues to plunge.
In contrast, resistance was likely to be found around $95,000−$96,000, with $100,000 acting as a substantial psychological barrier, stated DiPasquale. He further noted that if Bitcoin surpasses $100,000, $105,000 might become the next key resistance level.
DiPasquale also advised traders to monitor volume around these levels to assess the strength of any price action, while broader macroeconomic factors and sentiment would significantly impact Bitcoin's medium-to-long-term direction.
Tim Enneking, managing partner of Psalion, provided a contrasting perspective.
"Bitcoin has largely been range-bound, with more overhead action, since December 20, three days after the most recent all-time high," he stated in an email.
"So far, 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 served as substantial support in the past (although not without fail)," said Enneking.
"If $90k breaks, and the chances are roughly 50-50 that it will, there's some support at $88k, but the next support level will probably be lower (although it should still have an '8' handle)," he concluded.
"By the time that plays out, inauguration euphoria will likely surface among Bitcoin enthusiasts arriving in anticipation of a pro-crypto administration and BTC potentially transforming into a strategic reserve – and BTC will be set for the next all-time high," Enneking predicted.
Disclosure: I'm a holder of Bitcoin, Bitcoin Cash, Litecoin, Ether, EOS, and SOL.
The price of Bitcoin dipped below $91,500 on December 30, prompting traders to carefully observe psychological levels such as $100,000 and $90,000 as potential support or resistance areas, given their significance to many traders and investors. In the analysis of Joe DiPasquale, CEO of BitBull Capital, this $100,000 mark acts as a substantial psychological barrier for Bitcoin, making it a potential selling opportunity for some traders in the digital currency market.