Bitcoin Falls Back to $104K
The slight surge in confidence driven by the rise of cryptocurrencies Trump and Melania pushed Bitcoin’s price up by more than 5% to a new high of 109K. However, the volatility caused by Trump’s inauguration day has pulled the price back to the barrier of 105K in the short term.
Key Levels
By Julian Pineda, CFA - Market Analyst
- Short-Term Sideways Range
A consistent sideways range continues to form between the resistance at 105K and the support around the 90K zone. Recent buying oscillations have been significant in bringing the price back to the top of the lateral movement, but so far, no major breakout has occurred to invalidate the current formation.
- ADX Indicator
The ADX indicator line remains below the neutral level of 20, indicating a lack of a clear trend in the current price movements on the chart. Oscillations that continue to stay below 20 could prolong the potential sideways formation in the coming sessions.
- RSI Indicator
The RSI line continues to move consistently above the 50 level. However, it is now nearing the overbought zone at 70, which could pose challenges for bullish movements around the current resistance area. Readings above 70 on the RSI may signal the onset of bearish corrections on the Bitcoin chart.
Key Levels
- 105K: This is the most important resistance zone at the moment. Persistent oscillations above this level could reinforce buying momentum and initiate a new phase of previous bullish trends.
- 90K: The closest support zone, corresponding to the lower boundary of the current sideways range. Oscillations near this level could consolidate the current lateral movement and dampen confidence in a new sustained upward trend.
By Julian Pineda, CFA - Market Analyst
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