The price of Bitcoin recently approached the significant threshold of $98,000, but has since retreated to the critical support level of $94,500. This price action follows a distribution phase observed over the past few days, leaving traders wondering whether Bitcoin will rebound to $100,000 or experience further consolidation or decline.
Despite some voices on social media suggesting a potential failure of the rally and an impending bear market, the short-term technical indicators may hint at a different trajectory. As long as the $94,500 support remains intact, the recent breakout could still hold validity. While many may have anticipated a swift ascent to $100,000 post-breakout, it is important to recognize that the bullish momentum required a consolidation phase to regain strength.
Although Bitcoin has slipped below its ascending trendline, this pullback may facilitate a necessary cooling period, allowing the price to stabilize before attempting another rise. The 4-hour Stochastic RSI has reset, while the 8-hour and 12-hour indicators are beginning to decline. By the weekend, Bitcoin may build sufficient momentum for a renewed push.
The daily chart suggests that this could represent the first consolidation phase towards the $100,000 mark. A key aspect to monitor is the Relative Strength Index (RSI), which appears to be rejecting a 14-month trendline that dates back to November 2024. Additionally, a bearish divergence has developed as prices rose, which could influence future price movement. The tightening of the RSI against the descending trendline could dictate the next significant price movement before the end of January.
On the weekly chart, a bullish scenario is emerging for Bitcoin. Despite various indicators that could be interpreted as signs of a bear market rally, the simplest interpretation shows a breakout from an ascending triangle, a pattern typically associated with bullish trends. If Bitcoin maintains its position above this level by the end of the week, the following weekly candle could confirm the breakout on a higher time frame.
The Stochastic RSI indicators at the bottom of the weekly chart signal strong upside momentum. As long as they remain above the 20.00 threshold by week”s end, this momentum is likely to translate into price action.
In conclusion, the coming days will be pivotal for Bitcoin as it tests the $94,500 support level while positioning itself for a potential rally towards $100,000.
