January 21, 2025 at 05:25PM
Bitcoin has experienced significant volatility in recent days as the market reacts to the new Trump administration. On Monday, Bitcoin surged to its highest level ever, breaking above the December high of $108,364 and setting a new record at $109,356. However, the rally was short-lived, with prices retreating just as quickly. Buyers have since stepped in to defend the 200-hour moving average (MA), which currently sits at $100,844 and is trending higher. As long as the price remains above this level, buyers maintain control.
On the upside, resistance has formed near $106,256, which is the next key level for buyers to breach to regain bullish momentum. A move above this level would shift focus back toward the December high and the record peak reached on Monday.
Immediate support lies at the 100-hour MA, currently at $104,093, followed by a swing area around $102,760. This swing zone, characterized by prior highs and lows (see green numbered circle on the chart below) , serves as a critical short-term support level. If it holds, buyers have the green light to push higher. Conversely, a break below this zone would tilt the bias to the downside, targeting the 200-hour MA at $100,844 as a key level for maintaining the broader bullish outlook.
This article was written by Greg Michalowski at www.forexlive.com.
