Bitcoin (BTC) Analysis: Will It Rebound or Crash Below Critical Support Levels?

Bitcoin (BTC) Analysis: Will It Rebound or Crash Below Critical Support Levels?

Bitcoin is trading at $94K after a 13.2% drop in two weeks; key levels at $94,700 resistance and $92,500 support could determine its next move.

Bitcoin BTC Analysis: Will It Rebound or Crash Below Critical Support Levels?

Bitcoin’s BTC price has faced a period of stagnation in recent weeks, with the cryptocurrency failing to sustain its momentum after earlier optimism in December.

After reaching an all-time high of $108,135 earlier in the month, Bitcoin has since dropped to $94,399.87 at press time.

Price Performance and Recent Movements

Bitcoin’s price currently reflects a 13.2% drop over the past two weeks and is trading 14.2% below its all-time high. The digital asset showed a slight increase of 0.72% in the last 24 hours and 0.56% over the past seven days, indicating limited upward momentum.

Over the past week, Bitcoin’s price has fluctuated between $91,816.86 and $99,344.95, while the 24-hour range is narrower, at $91,375.39 to $94,838.16.

Despite a circulating supply of 20 million BTC and a market cap of over $1.86 trillion, Bitcoin’s trading activity appears subdued.

Key Technical Indicators Signal Caution

Technical analysis has identified crucial price levels for Bitcoin. The TD Sequential indicator on the 12-hour chart has signaled a potential

rebound if Bitcoin sustains a close above $94,700, suggesting a rally toward $97,500.

However, if the price breaks below $92,500, analysts warn that a continued bearish trend

Fibonacci retracement levels mark $94,700 as a critical resistance level. A close above this level could confirm further upward movement, while $92,500 is a key support level that, if breached, would invalidate the bullish outlook.

The monthly Relative Strength Index (RSI) stands at 75, below the historical threshold of 92, which has marked previous bull market peaks.

The RSI suggests that Bitcoin has not yet reached the overbought zone associated