January 28, 2025 at 05:16PM
Bitcoin’s price experienced a sharp decline on Sunday due to “risk-off” sentiment, pushing the digital currency lower. The price dropped to a low near $97,750, aligning closely with the upper boundary of a key support zone between $97,319 and $97,750 (highlighted in yellow on the chart). Holding within this range provided some support, and while the subsequent rebound hasn’t been linear, today’s trading has shown reduced volatility.
However, the recovery faces a significant hurdle at the 200-hour moving average (MA). The price reached an intraday high of $103,745, just shy of the 200-hour MA at $103,793. For bullish momentum to build, Bitcoin needs to break and sustain a position above this critical level.
If the price fails to clear the 200-hour MA and retreats below the 38.2% Fibonacci retracement level of the January 13 rally at $101,615, the bias may shift downward. A break below this threshold could invite further bearish momentum.
This article was written by Greg Michalowski at www.forexlive.com.