🚨 Bitcoin Update: Technical Analysis on 8-Hour Timeframe 🚨
🔍 Recent Price Action
Bitcoin reached $102,712 on January 7, 2025, but the price dropped significantly below $98K. This is where support and resistance levels come into play, and the developing price pattern could provide clues as to where the next direction lies.
📉 Further Correction Potential (5-15%)
Analysis suggests a deeper decline is likely, possibly towards $90K or lower. Use Fibonacci retracements to identify the next support area that could be a turning point!
📊 Overall Bullish Trend
Despite the decline, the long-term trend remains bullish! Check the Moving Averages (MA) and EMA to see if the bullish momentum is still valid or has started to weaken.
The price is currently below the MA(5) and MA(10), indicating short-term bearish momentum. However, the price is still above the EMA(200), which could act as long-term support.
🧠 Shift to “Hodling”More Bitcoin is being moved off exchanges, indicating that investors are choosing to hold rather than sell. This could reduce the selling pressure in the market, so it is important to monitor Trading Volume and On-Balance Volume (OBV) to understand the market dynamics.
📉 Support and Resistance LevelsBitcoin is testing support at $95K and is likely to move down towards $90K.
Watch the support and resistance patterns closely, as these could be the basis for further price movement.
Support and Resistance Levels:
Support: Around 91,530.45 (seen from the previous candle) and EMA(200) at 91,919.29.
Resistance: Around 98,784.22 (the last high) and MA(5) at 93,126.24
Trendlines and candlestick patterns can be the right tools!
💬 Market Sentiment and $95K LevelThe market is optimistic despite the correction. If the price stays above $95K, it shows that the market is still healthy. Use RSI or Stochastic Oscillator to check whether the market is overbought or oversold.
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