Bitcoin's brutal blunder or bounce – 90 to 98k what next?

Bitcoin has kept traders on edge with sharp moves, testing key support and resistance levels. The recent price action has followed our Neutral Strategy as discussed in the last idea - Is Bitcoin Falling in Wave 3? with Bitcoin bouncing from important support levels and then dropping again. The psychological level of 90,000 is now the most critical point to watch as Bitcoin looks for its next direction.

What happened since 10th Jan 2025

1. Bounce from support:

   • Bitcoin dropped to around 91,200, then bounced back to 95,799 by Friday, 10th Jan.

   • Over the weekend, it failed to cross above 96,000, hinting at weakness.

2. Drop on 13th Jan:

   • Bitcoin dropped back to 90800 level since start of the Asian session today.

   • The strategy to buy near 91,378 and target 98,500 worked well on Friday with shy of 98K Target -it reached close to 96000, and the same chance may come again if 90,000 holds in next few session.

3. Key level at 90,000:

   • This level is a psychological & critical level and is key for Bitcoin’s next move. A bounce from here could take Bitcoin higher, while a drop below could lead to much lower prices.

Bouncing above 90,500 - 10th Jan 2025 

Key levels and wave analysis

Wave Pattern

• Bitcoin is likely in a correction phase, which could be forming a w-x-y complex correction or abc pattern.

• A deeper fall below 90,000 could confirm the start of a stronger Wave 3 decline & Wave 2 completed at the recent highs of 95868 which is proposed Wave -W incase 90000-90500 zone holds as support zone which is critical ( Current low - 90200’s)

Important levels

1. Resistance levels:

   • 96,000 - 98,300: A possible target zone for an expected bounce holding above 90000, as this is the 61.8% retracement of the drop from 102,718 to 91,200.

   • 100,000: Breaking this level could turn Bitcoin bullish again.

2. Support levels:

   • 90,000-90500: A critical zone; breaking below the zone, it may lead to a strong drop.

   • 85,000 - 75,000: Likely targets if Bitcoin falls below 90,000.

Trading ideas

If Bitcoin bounces from 90,000

• Buy Entry: Above 91,500, with a stop below 90,000.

• Targets:

  1. 96,000 - 98,300

  2. 100,000

If Bitcoin drops below 90,000

• Sell entry: Below 90,000, with a stop above 91,500.

• Targets:

  1. 85,000

  2. 75,000

If Bitcoin stays in a range

• Buy near: 91,000, target 96,000, stop below 90,000.

• Sell near: 96,000 or near 98,300, target 91,000, stop above 100,000.

Bitcoin - Will it hold 90K - 13th Jan 2025 

 

What to watch next

1. 90,000 level: This is the most important level right now. If Bitcoin stays above it, we could see a bounce to 96,000 - 98,300.

2. Below 90,000: If Bitcoin falls below this level, it may quickly drop to 85,000 or even 75,000.

3. Short-term bounce: Bitcoin might follow the pattern of Indian markets, where some relief rallies can unfold due India Budget next before bigger moves. If this happens, Bitcoin could also bounce to 96,000 - 98,300, but sellers may come in again at higher levels.

Conclusion

Bitcoin is at a turning point. Holding 90,000 could lead to a bounce to 96,000 - 98,300. But if it falls below this level of 90K, we may see a big drop to 85,000 or 75,000, confirming a strong bearish trend. Traders should stay alert and ready to adjust their plans for the next move.