As of January 2, 2025, Bitcoin (BTC) is trading at approximately $96,593, reflecting a 3.15% increase from the previous close.

Despite this price increase, Bitcoin's trading volume has significantly decreased, falling by about 97% from its peak in November. This reduced liquidity suggests a lack of participation from both institutional and retail investors, which can lead to erratic price movements. Currently, Bitcoin is trading below the 50-day Exponential Moving Average (EMA), indicating a potential downward trend unless it breaks above this level with consistent momentum. The 50 EMA is currently around the $96,000 mark, serving as a critical resistance level. If Bitcoin fails to surpass this resistance, the next support levels to watch are at $85,000 and $76,500, corresponding to the 100 and 200 EMAs, respectively.

In the broader cryptocurrency market, altcoins have shown mixed performance. Ethereum (ETH) is trading at approximately $3,393, down from its mid-December high of $4,721. Other major cryptocurrencies have experienced similar fluctuations, reflecting the overall volatility in the crypto market.

Investors should closely monitor Bitcoin's price movements around the $96,000 resistance level, as a break above this could lead to further gains, while a rejection might indicate renewed downward pressure. Given the current market dynamics, it's advisable to stay informed and exercise caution when making investment decisions in the cryptocurrency space.#Write2Earn