Bitcoin Encountering Barrier at Resistance Zone, According to Technical Analyst, Preventing Potential Record Highs
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In the cryptocurrency market, Bitcoin has been maintaining a strong position, currently sitting comfortably above the $100,000 mark as of January 7, 2025. This bullish trend has caught the attention of analysts, with Michaeël van de Poppe, founder of MN Trading, and Ali Martinez expressing optimistic views about potential new all-time highs.
According to van de Poppe, if the $100,000 level holds, he expects Bitcoin to reach new all-time highs. This optimistic outlook is supported by the minor resistance at roughly $104,700–$105,770, which, if held, forms part of a broader bull market support band. This band has previously acted as a key level during upward price moves.
The pathway to these new highs involves Bitcoin stabilising above critical supports such as the Supertrend near $111,950 and mid-channel zones above $112,000. Once these supports are held, Bitcoin would need to overcome successive resistance levels at approximately $115,200 (an EMA cluster), $116,457 (a Fibonacci level and prior rejection), and further toward recent highs near $123,800.
If Bitcoin can break strongly above these resistance clusters with healthy volume confirming bull strength, it could pave the way for a new all-time high push beyond $124,000. However, this scenario depends on bullish volume and market momentum remaining intact, as current indicators show some pressure but a still intact bullish framework in the short term.
On the other hand, Ali Martinez has noted that Bitcoin only needs to overcome minor resistance at $104,700-$105,770. He also points out a minimal supply wall of 107,000 BTC between $104,700 and $105,770 that Bitcoin needs to overcome to head toward new all-time highs.
Meanwhile, speculators are showing limited willingness to pay premiums for long positions in Bitcoin. This cautious positioning is reflected in the current weekly MA of perpetual funding rates for Bitcoin, which is just below the neutral 0.01%. On most exchanges, appetite for leveraged longs remains subdued.
Despite this, Bitcoin is currently above a significant support zone between $95,400 and $98,400, where 1.77 million addresses bought over 1.53 million BTC. This strong base of support could provide a cushion should the price face a correction.
Analysts at Glassnode have observed the decline in funding rates, which suggests a cautious positioning among speculators regarding long positions in Bitcoin. This decline in funding rates may indicate a more conservative market approach, but it does not necessarily signal a new bear phase in the Bitcoin market.
In conclusion, while there are signs of some market pressure, the overall outlook for Bitcoin remains bullish. If the $100,000 level holds and Bitcoin can overcome the minor resistance at $104,700–$105,770, analysts predict a path toward new all-time highs. However, it is crucial for bullish volume and market momentum to remain intact for this scenario to play out.
[1] Source: Link to the analysis [3] Source: Link to the analysis
- Technology plays a significant role in the current bullish trend of Bitcoin in the finance industry, as analysts like Michaeël van de Poppe and Ali Martinez use advanced indicators such as the Supertrend, EMA clusters, Fibonacci levels, and support zones to predict potential new all-time highs for Bitcoin.
- Investing in Bitcoin remains an attractive option for speculators, as the cryptocurrency sits comfortably above the $100,000 mark, has a strong base of support, and is expected to push toward new all-time highs if the $100,000 level holds and the minor resistance at $104,700–$105,770 can be breached.
