Bitcoin (BTC) was trading at $97,202 at press time, representing a 2% increase over the past 24 hours and falling 1% for the week.
Bitcoin’s resistance and downside risks will be key to its next big move amid market stability, as analysts highlight.
Bitcoin: Key Resistance Levels and Bullish Outlook
Crypto analyst EGRAG CRYPTO has identified the 21-day Exponential Moving Average (EMA) on the 3-day timeframe as a critical level of support for Bitcoin.
Historically, BTC has rebounded off this EMA, and it is currently bouncing from it again. The analyst highlights three crucial resistance levels: $106,400, $108,500, and $103,000.
A close above $103,000 is a strong bullish signal, while a close above $108,500 may signal an impelling move up.
Suggesting that this level could pave the way for further gains, the analyst stated,
“The ultimate bullish move would be a close above $108.5K.”
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CME Gap and Potential Downside Risks
The breakout optimism remains alive but a CME gap is looming between $80,500 and $77,500.
The futures market leaves open a gap in the market which is a target for corrective price movement patterns.
If Bitcoin fails to penetrate the resistance from the $108,500 region, a sharp corrective move could take BTC down by 25% or even lower to the area around the $80,500 range.
A move like that could also fill the CME gap, a bearish target for market participants.
Decline in Network Activity and Whale Transactions
Crypto analyst Ali says Bitcoin network activity has dropped to its lowest level since November 2024, with active addresses falling to 667,100.
Such a decline indicated that both user engagement and transaction demand had dropped as a result of bearish perspective among the market participants.
In addition, Ali reported a 51.64% drop in large Bitcoin transactions, going from 33,450 to 16,180 in the last month.
The decreased whale activity comes as Bitcoin’s price continues to trade poorly, with some speculating the large investors are selling or floating out of the market.
Market Sentiment Remains Uncertain for Bitcoin
However, the dominance of Bitcoin, which claimed a market share of 54.2%, is a whopping 5.6 percentage points lower than it was last month.
Continued price movement has BTC trading in the $91,000 – $101,000 range, where the daily close will be key into determining its next move.
Bitcoin is at a key point as traders watch for warning signs on the downside and key resistance levels. That next breakout or breakdown could be the difference between its trajectory of weeks ahead.
