Bear vs bull battle over Bitcoin: Six re-tests of $91.735 signal pivotal weeks ahead

Bitcoin at a crossroads: Bulls must defend $91.735 to avoid deeper losses

Bitcoin's projected breakout at the consolidation phase per the January 4, 2025 analysis was short-lived. The upside momentum failed to sustain at the $101,931 zone as bears swiftly took control following the failed breakout attempt. The pullback was aggressive, wiping out more than $10,000 in just 48 hours, representing a decline exceeding 10%. This event is a stark reminder of cryptocurrency market volatility, often surprising traders and investors with sharp movements.

Now, six days after the pullback, Bitcoin is under significant pressure at the $91,735 level—a zone we have consistently highlighted in our prior analyses. This critical support level has been tested for the sixth time in recent weeks, putting the bulls in a precarious position to defend this key zone. The clock appears to be ticking, and failure to hold $91,735 could invite deeper declines, targeting $90,000, $85,000, and potentially $81,000 as notable levels for support.

However, if Bitcoin sustains its footing at $91,735, we anticipate continued price consolidation from $91,735 to $98,996. Such consolidation would align with the behaviour often observed in crypto markets when they gear up for a significant directional move.

Additional insights and current news impacting Bitcoin

• Technical Perspective: Several market analysts point out Bitcoin is at a crossroads. The resistance level around $95,000 continues to weigh on upside momentum, bolstered by the 50-day Exponential Moving Average (EMA50), while broader market sentiment remains cautious. Analysts from Economies.com noted that failure to breach $95,195 could continue the bearish trend, possibly targeting the lower levels outlined.

• Market Predictions: Interestingly, despite the current bearish tilt, several industry reports project optimistic scenarios for Bitcoin in 2025. Key institutional players like VanEck and Bernstein foresee potential price surges between $120,000 and $250,000 by year's end, spurred by a possible shift in U.S. regulatory policy under the new Trump administration.

• Macro Dynamics: Broader market conditions such as rising interest rates, ongoing discussions surrounding cryptocurrency regulation, and the push for spot Bitcoin ETFs continue to shape the overall sentiment. These external factors could compound the selling pressure or reignite bullish hopes in the weeks ahead.

BTC/USD price chart Jan 5 2025 analysis

BTC/USD price chart Jan 13 2025