Bitcoin (BTC) Hits Key Resistance: Will It Break Through or Face Rejection?

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As an analyst, I’ve observed a remarkable recovery in Bitcoin (BTC) from its dip to $89,000, now finding itself at around $97,000. However, a significant resistance level looms ahead. The question is: will the bulls manage to push past this barrier and aim for a fresh all-time high, or are we on the brink of another price rejection?

S&P dips to channel bottom

One significant contributor to Bitcoin’s decline recently has been the jitters in the U.S. stock exchange, particularly evident in the S&P 500 index. A closer look at its chart reveals a drop of approximately 2.65% during last week.

As a crypto investor, I’ve noticed that this week’s candle appears to be rebounding from the base of the ascending channel. The upcoming CPI data release today could significantly influence whether this rebound persists or if the price plummets below the channel’s bottom instead.

Remember this: The movement of the stock market has a strong influence on Bitcoin’s direction, so if the stock market rises or falls, it’s likely that Bitcoin will follow suit.

MicroStrategy buys as usual, but U.S. Spot Bitcoin ETFs are subdued

In terms of demand, Michael Saylor’s company, MicroStrategy, purchased an additional 2,530 Bitcoins on Monday, increasing their total Bitcoin holdings to approximately 450,000.

Contrarily, U.S. Bitcoin ETFs have shown little activity during the recent market downturn, with money flowing in roughly equal to money flowing out, resulting in a balanced exchange.

$BTC rejection about to take place?

The daily Bitcoin chart indicates that the price has reached a significant horizontal level where it might face resistance. This resistance is further reinforced by the 50 Simple Moving Average. Since all short-term momentum indicators have peaked, this could suggest a possible price reversal at this point. If buyers manage to push the price up, they might encounter rejection from the trendline above that slopes downwards.

50 SMA provides perfect weekly support

Instead of intricate indicators that rely on a variety of measurements and signs, Simple Moving Averages prove to be reliable sources of data, particularly in longer time periods.

On the weekly Bitcoin chart, the 50 Simple Moving Average (SMA) serves as a distinctly evident roadmap for the bull market. Throughout this market, the price typically hovers above it, with occasional dips that don’t last long enough to break below. However, if we look back at the 2017 bull run, it’s worth noting that the 50 SMA didn’t begin to decline until deep into the subsequent bear market.

To put it simply, when you examine the recent market movements, the extended lower shadows on the candles resemble a rocket’s launch. This suggests significant buying interest as the price approaches the rising trendline. Is a strong upward surge imminent? It might just be!

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2025-01-15 14:10