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- Bitcoin’s $90,727 support is under pressure; repeated tests raise risks of a breakdown toward $77,500.
- Key resistance levels at $102,688 and $106,400 block Bitcoin’s rally, reflecting strong selling pressure and market uncertainty.
- The 21-day EMA signals mixed momentum; Bitcoin’s struggle to stay above it points to indecision and short-term volatility.
Bitcoin’s price faces mounting pressure as it hovers near the $90,727 support zone, a level tested five times recently. The cryptocurrency currently trades at $94,156, down 0.58% in the latest session. Despite buyer confidence in this key support, the growing frequency of tests signals increased risks of a breakdown. Traders remain cautious as Bitcoin struggles to breach key resistance levels.
Support Zone in Focus
The $90,727 support level has become a battleground for buyers and sellers. Long wicks near this zone reflect strong buyer activity. However, the lack of momentum to push higher raises concerns about sustainability. The CME gap at $77,500 also looms, signaling potential downside risk if the current support breaks. Below this, the $80,500 level could act as a safety net.
Another level of intricacy is introduced by the 21-day Exponential Moving Average (EMA). With its oscillations between bullish and negative momentum, Bitcoin finds it difficult to stay above this dynamic indicator. This highlights a lack of clear market direction in the short term.
Resistance Levels and Market Sentiment
Resistance levels at $102,688, $106,400, and $108,341 present challenges for Bitcoin’s upward movement. Recent attempts to clear $102,688 failed, indicating heightened selling pressure. Each pullback from these levels reflects a lack of buyer strength to sustain rallies.
Moreover, the candlestick structure reveals mixed signals. Upper shadows near resistance highlight strong seller activity while alternating candles suggest indecision. The market’s focus remains on whether Bitcoin can break above resistance or maintain its crucial support.
What Lies Ahead?
The outlook remains uncertain. If Bitcoin breaches $102,688, it could trigger a rally toward $106,400 and beyond. However, failure to hold $90,727 may lead to a correction, possibly filling the CME gap at $77,500.
Investors should closely monitor the price’s interaction with the 21 EMA. This level provides insights into short-term trends and momentum. Besides, global events, such as the upcoming political inauguration, could introduce volatility.