Bitcoin continues to experience pressure at a key resistance level following the January 3 Wall Street opening. Despite growth potential, concerns about a possible correction remain.
Current Market Situation
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD trading above $97,000 at the start of the U.S. session. After a rapid start to the new year and retesting $96,000 as support, Bitcoin aimed to reclaim the 50-day simple moving average (SMA). At the time of writing, the 50-day SMA stood at $96,740 and previously acted as support for over two months before being broken in late December.
Key Level Analysis
Trader SuperBro noted a successful breakout from a falling wedge pattern but cautioned against aggressive long positions near potential resistance. The need is to reclaim the 20 and 50-day SMA and turn them back into support. Other analysts predict the trendline could regain its role as support, potentially fueling a continued bull run after the recent cooldown.
Short-term Predictions from Analysts
On shorter timeframes, trader Roman advised caution. He noted that some investors might be getting excited too early amid low trading volumes and an overheated stochastic relative strength index (RSI), indicating a potential price dip. Fellow trader Daan Crypto Trades highlighted the 200-period SMA on the four-hour chart as a critical resistance level with the 200-period EMA providing support, emphasizing the trading volume in this range. According to him, breaking above $98,000 is necessary to initiate a rally toward new highs. In the short term, holding the $95,000 level is crucial.
Analysts continue to closely monitor Bitcoin's movements around key levels, predicting possible future developments. Investors should prepare for volatility and focus on trend confirmations before making decisions.
