Bitcoin Price on the Brink: Key Levels to Watch as $100K Retest Looms

Bitcoin has recently come within striking distance of new all-time highs on January 22, but analysts warn that the door is open to a potential 5% drop. Data from Cointelegraph Markets Pro and TradingView reveals that Bitcoin's price action is currently within a critical range, with market observers closely monitoring important support levels.

Spotlight on $100,000 BTC Price Support

For Keith Alan, co-founder of Material Indicators, the focus is on $100,000 as a vital downside target. The removal of a significant wall of bid liquidity at this level makes it particularly appealing for a potential retest.

The accompanying chart illustrates the thin bid liquidity compared to a sell wall positioned above the spot price at $110,000, presenting a major hurdle for bullish traders.

Bitcoin Needs to Print Higher Daily Closes

Looking upward, trader Rekt Capital identifies a narrower trading range for Bitcoin, emphasizing the importance of daily closes above $106,000 to set the stage for a breakout towards all-time highs. He notes that the confluent support area around $100,000 remains valid and has previously enabled consolidation within the $101k-$106k range.

Market Sentiment and Future Predictions

Fellow trader Daan Crypto Trades suggests that price discovery may commence if daily candle closes occur above $108,000, indicating that many traders might prefer to remain patient until the market either sweeps the range high or low again.

Patric H, known as Cryptelligence, provides a bullish forecast, highlighting that key technical levels are being maintained, particularly the point of control (PoC) of Bitcoin’s weekly range at approximately $103,000. He asserts that the recent low-timeframe correction seems to be complete, marking a continuation of the bullish trend.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.