Bitcoin (CRYPTO:BTC) faces significant headwinds to consistently surpass $100,000, with technical indicators showing that the king of cryptos has several obstacles to overcome in the near term.
What happened: Bitcoin is back below $99,000, falling 2.5% in the last 24 hours and trading towards $98,650 at the time of writing.
The “Bitcoin weather report” from the pseudonymous technical analyst “The Weatherman” posted on Xcurrent price movements suggest a possible retest of a trendline around $90,000.
Resistance near $99,600 is crucial, failure to break it could lead to retests of declines around $91,000.
Short-term indicators show mixed signals.
The 4-hour chart suggests upside potential with a golden crossover rediscovered, with liquidation charts showing significant stop clusters at 97,000 (longs) and 99,600 (shorts)
Also Read: Bitcoin Spot ETF Flows Exceed $987 Million, But Watch That Mid-January Financial Deadline
What will follow: Looking ahead over the next 1-2 months, the trader predicts that Bitcoin could fake a breakout above $100,000 and retest $90,000 before regaining momentum for a rally.
Bitcoin’s prolonged consolidation phase, especially during a multi-month uptrend, tends to create a favorable environment for an altcoin rally.
Market dominance indicators suggest that Bitcoin’s share of the crypto market may have peaked, a common harbinger of the start of an “alt season,” where alternative cryptos outperform Bitcoin.
Favorable narratives could be seen in Solana’s native AI, GameFi, and DEXs.
The Weatherman advises traders to remain patient, waiting for clearer bullish signals to confirm the next phase of the rally.
Read more:
Image: Shutterstock
