Why is Bitcoin falling? The cryptocurrency market has panicked, but what can the latest Bitcoin technical analysis reveal about the Bitcoin price at the moment with bears controlling the Bitcoin price movement.
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price
Trading volume within 24 hours
Recent price action 7D
He entered like a monster, winning 10% and then immediately losing 7%. Is the market still bullish or has the trend turned bearish? It was quite the start of the new year! Many over-leveraged traders were eliminated – liquidated.
Others suffered losses, and some may still be holding their positions, believing the bullish thesis. Such moves provide good technical analysis data to consider, so let’s expose them!
Bitcoin vs. Gold – The launch of the No. 5 rocket was delayed due to turbulence above the launch site pic.twitter.com/TUpK6lR38t
– Northstar (@NorthstarCharts) January 8, 2025
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Bitcoin Technical Analysis: Bullish or Bearish – To Trade or Not to Trade
(BTC/USD)
As usual when performing technical analysis, we first look at the higher time frame – 1D. I intentionally zoomed out to December 2023, so we can see how similar the price is to the pattern that formed last month. Both Decembers formed ascending channels, and both collapsed. The 6-month down channel in between was an accumulation that was broken to the upside.
I have taken the purple box as an area of interest, because it is an untested area. Since the price fell below the MA50 (white), this box is in line with the MA100 (green), from which the uptrend resumed in January 2024.
(BTC/USD)
Moving to the four-hour frame, what immediately catches the eye is the strong rejection at $102,000 and the full pump correction we saw just two days ago. The bullish outlook quickly turned bearish.
Is this death for the bulls and victory for the bears? Looking closely, we can see that there was a trend line bounce, which served as a good catalyst to enter a short position at around $99,000 and close with a good profit at the support level. In this time frame, the price is now below all the moving averages we are monitoring.
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(BTC/USD)
Last but not least – 1 hour. Bulls don’t like what happened here. This quick pump sell/bounce looked promising until none of the moving averages could act as support.
Although the RSI is showing a bullish divergence, it would be better to wait for the RSI to decline slightly on higher time frames before entering buy trades again. Or until we see the moving averages recovered and retested. Until then – the bears are in control.
Final thoughts on Bitcoin technical analysis
Personally, I would wait until the Bitcoin price stabilizes and find support – ideally around the levels I indicated in the 1D chart. Finding a bottom around $85,000 could become a solid base to start the next leg higher.
A break below $68,000 means the uptrend is over. It’s a long way down, and the price is unlikely to fall to that level, considering the ongoing ETF inflows. However, anything can happen in the markets, so always manage your risks and protect your capital!
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