Bitcoin Price Analysis and Potential Downward Trend. Article Sponsored by CloseOption

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 Bitcoin Price Analysis and Potential Downward Trend. Article Sponsored by CloseOption

 

The key support and resistance level ahead for Bitcoin is as follows:
• Third Key resistance level of Bitcoin: 101700
• Second Key resistance level of Bitcoin: 98000
• First key resistance level of Bitcoin: 96250
• First key support level of Bitcoin: 95200
• Second Key support level of Bitcoin: 94100
• Third Key support level of Bitcoin: 92500
 
Bitcoin Price Analysis and Potential Downward Trend
As noted in our previous Bitcoin analysis on January 28, 2025, the price exhibited a potential for decline. This has materialized with the chart indicating a downward trend, reaching a low of $91,146 thus far.
While long-term trends (monthly and weekly) remain bullish, emerging signs of exhaustion and potential price ceiling formation suggest a more cautious approach among buyers.
The formation of two candlestick patterns (Spinning Top and Star) over the past two weeks reflects indecision among traders. It hints at a potential weakening of the upward trend, pending confirmation by surpassing the previous week's high.
The weekly price action reveals a negative divergence with the Relative Strength Index (RSI), corroborated by the Evening Star candlestick pattern. This does not bode well for continued upward momentum.
Should the support level of $95,200 be breached, the price could decline towards support levels at $94,100 and potentially as low as $92,500 in a more pronounced downturn.
Conversely, in an upward scenario, a key signal for continued bullish movement would be the breaching and sustained price action above the critical $98,000 level. This would establish the $101,700 resistance level as a primary target for buyers.
 

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