Bitcoin's price action has entered a consolidation phase following a significant rally that pushed it to the doorstep of the $98,000 resistance level. The cryptocurrency started a fresh increase, managing to stay above the $93,500 support and settling above $95,000 and $95,500. The bulls successfully pushed the price above $96,000, leading to a spike above $97,500 and forming a high at $97,898.
Currently, BTC is trading above $95,000 and the 100-hour Simple Moving Average, correcting some of its recent gains. The price has moved below the 23.6% Fibonacci retracement level of the wave from the $89,995 swing low to the $97,898 high. On the hourly chart, a declining channel or a possible bullish flag is forming with resistance identified at $96,200.
Market structure has remained constructive since the November rebound, but momentum has cooled after tagging the $98,000 zone. BTC is now compressing into a tight range between $95,000 and $97,000, with sellers defending the $97,000 area and buyers absorbing supply near $95,000. Analysts describe this as a classic "pause after impulse" phase, where liquidity builds on both sides before the next decisive move.
Key resistance levels to watch are layered at $96,200, $96,800, $97,200, and the crucial $97,900-$98,100 zone. A close above the $97,000 resistance could send the price to test $97,800 and potentially target $98,800, $99,200, and the psychological $100,000 level. However, if Bitcoin fails to rise above the $96,200 resistance zone, it could start another decline.
Major support levels are clustered at $95,000, $94,000 (which aligns with the 50% Fib retracement level), $93,000, $91,850, and $91,500. A clean break below $94,000 could invalidate the current support thesis and trigger a faster move toward the $92,000 zone. Technical indicators show the hourly MACD is losing pace in the bullish zone, and the hourly RSI for BTC/USD is now below the 50 level.
