FX.co ★ #Bitcoin chart analysis

Bitcoin’s on the Edge: Key Levels in Focus as Momentum Builds Market Influencing Factors Bitcoin has been caught in a broader risk-off market mood this week. Prices slipped sharply below key support levels, with BTC dipping toward the low $80,000s at the start of trading today, driven by a mix of macro headlines and technical forced selling. The biggest driver right now is uncertainty around the upcoming change in leadership at the U.S. Federal Reserve. Markets are reacting to the nomination of Kevin Warsh as the next Fed chair, a figure known for taking a tougher stance on interest rates and liquidity than markets had hoped for. That has lifted the U.S. dollar and pressured assets like Bitcoin. Crypto is also seeing significant leveraged long liquidations. As prices slipped below recent support, traders who were betting on a rally were forced out, triggering further selling pressure. In the last 24 hours alone, a large number of long positions were wiped out, signaling heightened stress among short-term participants. Institutional flows are part of the backdrop. Bitcoin-linked ETFs have recorded net outflows, which removes one of the traditional sources of buy pressure in crypto markets. Retail sentiment measures are in the “extreme fear” zone, reflecting how defensive traders become amid the recent drop. In short, Bitcoin’s price action this week isn’t happening in isolation. It’s tied closely to moves in broader markets, shifting monetary policy expectations, and accelerating technical selling. Technical Analysis Bitcoin is struggling to find a solid footing after breaking key levels. price is trading around the low $80,000s, near recent lows first tested in late November. That range has become a critical battleground. Breaks below this zone tend to attract additional downside pressure from algorithmic and momentum traders. Immediate resistance sits above in the $83,000–$85,000 area. This used to act as support, but now it’s flipped to a supply zone. A sustained move back above it would give short-term traders a reason to step back in. On a slightly wider view, the next major resistance cluster stretches toward $90,000–$95,000. That’s where horizontal resistance lines up with recent consolidation highs. Clearing that zone would be the first meaningful step toward reclaiming the mid-$90,000s. In terms of downside structure, the $80,000 psychological level matters a lot. If Bitcoin closes decisively below it on higher timeframes, chart watchers will start eyeing deeper support around $75,000 and then the $70,000 area. On indicators, momentum oscillators are broadly neutral to bearish. Traders looking at RSI and MACD are seeing mixed signals that reflect a lack of clear directional conviction. That’s typical in prolonged consolidations or corrective phases. To sum up the technical picture: Bitcoin is range-bound between key levels, under macro pressure, and vulnerable to further pullbacks unless buyers step in with conviction.

Trade Setups and Market Scenarios Bullish Scenario If BTC can reclaim $85,000–$88,000 with volume and hold above it on a daily close, there’s room to rotate gains toward $90,000–$95,000. Breaking that cluster would open a run back toward psychological resistance near $100,000. This path requires renewed buying interest and some easing in macro pressure. Neutral/Consolidation Scenario Given the current price compression and range-bound behavior, Bitcoin could simply chop between $80,000 and $90,000 for the next few days. Low volume on a down move often signals a lack of strong conviction, which supports sideways action. This scenario is likely if macro headlines stay mixed and traders remain defensive. Bearish Scenario If price breaks and closes below $80,000 on sustained volume, downside risk increases. The next targets could be support zones near $75,000 and potentially lower, toward $70,000 if selling intensifies. These levels aren’t guaranteed pivots, but they are reference points where buyers have shown interest in past sell-offs.