The Bitcoin market is currently exhibiting a predominantly bearish sentiment despite some minor positive movements, with BTC price action showing consolidation and low volatility. According to CoinStats data, Bitcoin (BTC) has seen a modest 0.7% increase over the last 24 hours, trading at $90,107 at press time.
On the hourly chart, BTC has bounced off a local resistance level at $90,005. Analysts note that if the daily candle closes near or above this mark, there could be potential for an upward move toward the $91,000 range in the near term. However, the longer-term picture suggests the price remains distant from major support and resistance levels, indicating that traders are unlikely to witness sharp price movements imminently.
The most probable scenario for the remainder of the week is sideways trading within the $89,000 to $91,000 zone. This view is reinforced by the weekly chart, which shows declining trading volume, confirming a lack of significant energy from either bullish or bearish participants. Consequently, chances of increased volatility by the end of January appear low.
Meanwhile, Bitcoin price recently initiated a fresh decline below the $89,500 support level. BTC dropped sharply, breaking below $90,000 and $89,000, and even touched a weekly low of $87,200 before consolidating losses. The cryptocurrency is now trading below $90,500 and the 100-hour Simple Moving Average.
Technical analysis reveals two bearish trend lines forming with resistance at $90,300 and $93,000 on the hourly BTC/USD chart. For a recovery wave to gain traction, Bitcoin needs to clear the $92,000 resistance zone. The first key resistance sits near $91,000, followed by $91,350, which corresponds to the 50% Fibonacci retracement level of the recent decline from the $95,475 swing high to the $87,200 low.
If Bitcoin fails to rise above the $91,350 resistance, it could start another decline. Immediate support is near $89,150, with major support levels at $88,000 and $87,200. A break below $87,200 could see the price test the $86,500 support, with the main support sitting at $85,500.
Technical indicators show mixed signals: the hourly MACD is losing pace in the bearish zone, while the hourly RSI is now above the 50 level.
