With a rejection at the $100,000 threshold, Bitcoin has had a difficult start to 2025. Notably, since its initial breakthrough in early December, Bitcoin has failed to maintain a significant price level of over $100,000, and several breakouts have been followed by rejections. Bitcoin market volatility The most recent rejection occurred last Monday when the price reached a high of $102,000, but by Thursday, it had dropped precipitously to $92,000.
Bitcoin’s Support Bullish or Bearish
Although the cryptocurrency has largely held above the $90,000 support level even during the recent corrections, the bearish outlook depends on its ability to defend this level. According to technical analysis by cryptocurrency analyst EGRAG CRYPTO, Bitcoin has made five separate attempts to test a support trendline around $90,000, which further reveals the importance of the level.
Bitcoin is more vulnerable to a sharp decline. With this in mind, the main task for Bitcoin bulls would be to hold above the $90,000 and break resistance levels above $100,000 to Bitcoin market volatility The bearish case for Bitcoin has gained more attention as a result of this ongoing tug-of-war, with technical analysis pointing to a 50/50 chance of a further decline or a bounce.
Resistance Struggle for Bullish Momentum
As observed by EGRAG CRYPTO, Bitcoin could continue to represent a bearish threat until it closes above a few resistance levels. These resistance levels are positioned at $103,000, $106,400, and $108,500, and sustained daily closes above these thresholds are necessary to confirm a bullish trend. The third resistance of $108,500 is the most important, as a break over it would see Bitcoin trading at fresh all-time highs.
According to EGRAG CRYPTO, existing technical indicators show that the possibilities of a pump are modest at the moment. For instance, Bitcoin has now lost the support of the 21 EMA on the daily candlestick timeframe, and the sentiment is currently in a neutral zone on the Fear and Greed Index.
Market Outlook Post-Trump Inauguration
As it stands, the largest factor that could see bullish momentum return to Bitcoin is the forthcoming inauguration of Donald Trump on January 20th and the anticipated crypto-positive policies during the new government. According to EGRAG CRYPTO, the event has the potential to cause a temporary upswing or worsen the current downtrend. Bitcoin market volatility Bitcoin is currently trading at $94,400.
Expectations of crypto-positive measures from the incoming Trump administration could lead to bullish momentum in Bitcoin’s price after his inauguration on January 20. If this happens, Bitcoin’s performance can see a short-lived bounce or continue its downward spiral, says The market’s unpredictability is evident as Bitcoin trades at Crypto markets may see volatility as a result of investors’ heightened vigilance over political developments.
Summary
Bitcoin has struggled to maintain its position above the $100,000 mark in early 2025, with recent rejections after attempting to break through that level. The cryptocurrency has remained above the crucial $90,000 support level, but continued testing of this trendline increases the risk of a sharp decline.
Bitcoin faces resistance at key levels of $103,000, $106,400, and $108,500, with a breakthrough needed to confirm bullish momentum. Bitcoin market volatility The upcoming inauguration of Donald Trump on January 20th could influence Bitcoin’s market, potentially sparking a short-term rally or further decline, depending on the government’s crypto-positive policies.
