Bitcoin Technical Analysis: Key Levels To Trade
2025 has started out with a rally in Bitcoin. The new year has renewed optimism and excitement for crypto investors, who are eagerly awaiting Trump's inauguration in late January. The hope from crypto investors is that he will put in place many pro crypto policies. While exciting, it does potentially set the crypto markets up for disappointment if everything they dream of, does not happen.
From a technical analysis standpoint, Bitcoin is chopping in a megaphone pattern. Megaphone patterns are two trend lines that diverge. The bottom trend line is at $91,800 while the upper trend line is moving higher, currently sitting near $104,000 (it will be at $105,000 within a week or so).
As long as Bitcoin stays within this megaphone range and does not take out the $108,000 all-time high, the pattern is bearish. Should price break above the $108,000, probability would swing to an upside move, although somewhat limited. Resistance currently sits at $110,000 and then $115,000.
Should the major support of $91,800 break on Bitcoin, there is no major support until $75,000-$74,000.
The biggest risk for Bitcoin and crypto as a whole continues to be risk-off in the overall markets. There is clearly a major correlation between the stock market going up and crypto going up. Should the stock market collapse, it would likely be the biggest headwind for crypto. This means crypto investors must still pay attention to economic data, policy, inflation, interest rates and even earnings from the mega-cap-trillion-Dollar companies.
