Bitcoin continues to hold above the important trendline after a breakout occurred a few days ago. However, the price has yet to show a sustained move away from this line, and the market needs to confirm whether it can break out decisively. A strong upward movement is ideal for a bullish outlook, but the market will have to show its strength over the coming sessions.
At the time of writing, Bitcoin is down by more than two percent and is trading below the $102,500 level. The largest cryptocurrency has erased the majority of the gains made in the last seven days. Along with Bitcoin, the majority of the top 10 coins have slipped into the red zone.
Looking for Support and Resistance Levels
Bitcoin’s recent price movement suggests that a correction could be taking place after an initial surge earlier in January. The market is likely consolidating before another push higher. The immediate focus is on the potential for a rally toward the $130k level, which could mark the final leg of this bullish cycle. On smaller time frames, there are two potential scenarios for the direction Bitcoin might take:
Scenario One: Bitcoin may continue to push higher if it stays above crucial support levels. The market should remain above $99.1k for this scenario to play out, hinting that upward momentum could continue.
Scenario Two: If Bitcoin falls below $99.1k, the market could be in a larger correction phase. In this case, Bitcoin could test support between $92.6k and $97.2k before making another move.
The first key support area lies between $99.1k and $101.5k. If Bitcoin holds above this zone, the bullish outlook remains intact. On the resistance side, Bitcoin must break above $107,250 to confirm further upward momentum and validate a continued bullish trend.