How far can bitcoin fall? This shows the supports and resistances
The analysis of supports and resistances allows establishing probabilities of next movements.
Trump’s imminent inauguration as US president could completely change the landscape.
Bitcoin (BTC). has entered a lateralization zone above $90,000.
At this time, according to on-chain data shown by Glassnode, There are old investors who are taking profits. Still, many new investors take advantage of prices below $100,000 to enter the market.
Such a supply and demand situation creates an equilibrium situation in which bitcoin, for now, remains relatively stable.
But… What would happen if the supply of bitcoin exceeds the demand? There is only one answer for that: the price will fall even more.
Support and resistance zones are important concepts in the technical analysis of the cryptocurrency market. These zones, as explained by Criptopedia—the educational section of CriptoNoticias—are formed due to the purchase and sale decisions of investors who act around certain key prices.
A support zone is a price level at which a decline is temporarily halted due to a concentration of demand. On the other hand, a resistance is the level at which the price stops rising due to predominant selling.
In the current scenario, if bitcoin lost $90,000 support (green rectangle in the graph below), The next significant support, according to the analysis of historical price patterns, would be at $74,000. (yellow rectangle). This level corresponds to a previous all-time high, suggesting that it could act as a psychological floor where investors could be motivated to buy, anticipating a recovery.
However, it is important to recognize that The analysis of supports and resistances shows probable trends, but not certainties.
The price of bitcoin can sideways for days or weeks, falling and stopping before reaching projected support, or finding unexpected momentum that takes it to higher levels before hitting these supports.
The influence of macroeconomic factors also plays a significant role in the behavior of the price. With the imminent inauguration of Donald Trump to the presidency of the United States and its pro-cryptocurrency promises, market sentiment could lean towards optimism.
If Trump starts implementing policies that favor the industry, we are likely to see a positive impact on the price of BTC.
