Bitcoin (BTC) has recently bounced off two-month lows, reaching near the $99,000 mark, buoyed by positive U.S. inflation reports. However, new analysis from trading resource Stockmoney Lizards warns that the leading cryptocurrency could face a tough challenge ahead, particularly at the $102,000 level.
In a post shared on X on January 16, Stockmoney Lizards stated that despite Bitcoin’s impressive recovery, the digital asset is likely to face rejection at a key resistance zone. According to the analysis, even if Bitcoin manages to reclaim the $100,000 level, the $102,000 price point is expected to be a “hard nut to crack.” The resource emphasized that the upcoming weeks could see Bitcoin trading in a range between $90,000 and $100,000.
#Bitcoin update
— Stockmoney Lizards (@StockmoneyL) January 16, 2025
BTC is entering a resistence zone (upper channel level).
Fibs are drawn here and should guide future short-term PA:
1. 91 -92k is the high volume lower support level (1.618 Fib Extension)
2. If BTC moves higher, the previous high at 102k will be the hardest nut… pic.twitter.com/ZgeKIiaw94
The analysis also highlighted the upper channel level on the BTC/USD chart, noting that Bitcoin’s price action is entering a resistance zone, which could lead to further consolidation. With the Presidential inauguration looming, Stockmoney Lizards predicted that a bull market revival is unlikely in January, suggesting that rangebound trading will continue for the time being.
Other traders, including BigMike7335, echoed similar concerns regarding the $102,000 level. They noted that Bitcoin must successfully flip this price point into support to avoid the risk of further downward movement. BigMike7335 specifically warned of the threat of a triangle pattern forming if the $102,000 resistance is not broken.
However, not all market sentiment is bearish. Optimistic traders point to the invalidation of a head and shoulders pattern, which had previously signaled a potential reversal. Trader Bluntz celebrated the pattern’s failure, while Tony “The Bull” Severino dismissed it as irrelevant, suggesting that the market may be misinterpreting Bitcoin’s price action.
As Bitcoin hovers near $99,000, traders are closely watching for any signs of a breakout or rejection, with many anticipating more rangebound trading in the weeks ahead.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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