Bitcoin: the $96K or the $92K

Another week of a higher volatility on the crypto market passed. As the BTC became a part of the mainstream markets, its price continued to react to all concerns that investors on traditional markets have. Currently, the major focus on investors is on the imposed trade tariffs of the US Administration, but also inflation fears. The posted non-farm payrolls and unemployment figures in the US on Fridays implied a higher correction of the US equity markets, and BTC followed. The basis for correction were assumptions of investors that higher average earnings of US employees might trigger a higher inflation and consequently Fed's decision to hold interest rates at current levels for a longer period of time.

Monday started with a huge move of BTC price to the level of $ 92K support line. However, this was an early move to the downside, which was not sustainable at this moment, in which sense, the price of BTC reverted back. During the week BTC was mostly traded around the $ 98K, with several attempts to break the 100K level. As this move was also not sustainable, the market reverted back, and again began sort of side trading between levels of $ 98K and 96K. The RSI is reflecting these moves, moving also in a range between the levels of 50 and 42. The moving average of 50 days slowed down its divergence from MA200, however, the distance between lines is high, in which sense, the potential cross is not in the store in the near term.

By looking at the daily chart on a larger scale, there is indication that the chart is currently more bearish than bullish. The level of $ 92K is a significant level, which sustained the price of BTC since November 2024. This level was shortly tested on Monday, which implies that the market is potentially eyeing this level in the future period of probably a few weeks from now. Still, for the last four days, the level of $96 was also holding strongly. The question is how long this level can hold the selling pressure? This level is going to be a starting point for the week ahead. In case that this level manages to hold, then there is high probability that the price will revert back toward the $ 98K, most likely will try to test the 100K for one more time. In the opposite case, if it breaks the 96K support line, then the next stop of the BTC might be the 92K.