Bitcoin Price Analysis on 4th January 2025

Last 24 hours we see Bitcoin once again attempting to head to $100,000. Let's see what the chart say.

Detailed Technical Analysis:

1. Current Price and Momentum:
   Bitcoin (BTC/USDT) is trading at $98,143.44, up +1.51% over the last 24 hours. The price has recently tested the $98,976.91 resistance but has retraced slightly, suggesting some profit-taking or a cooling-off phase.

2. EMA Analysis (Exponential Moving Averages):

   • EMA(7): $97,766.15 (short-term trend)
   • EMA(25): $96,328.84 (mid-term trend)
   • EMA(99): $96,452.87 (long-term trend)

   The price is currently above all three EMA levels, indicating a strong bullish sentiment. The alignment of the EMAs in ascending order (EMA(7) > EMA(25) > EMA(99)) reinforces this uptrend.

3. RSI (Relative Strength Index):
   The RSI(6) is at 68.44, nearing the overbought threshold of 70. This suggests that while the price momentum remains bullish, there could be a potential pullback if overbought conditions are confirmed.

4. Volume Analysis:
   Recent volume spikes, as shown in the lower panel, suggest increased interest and activity, especially near the recent highs. However, volume has tapered slightly, indicating potential caution among buyers at the current price levels.

5. Key Support and Resistance Levels:

   • Resistance: $98,976.91 (recent high), followed by $100,000 (psychological level).
   • Support: $96,100.01 (24-hour low) and $96,328.84 (EMA(25)).

6. Trend Overview:

   • The 4-hour candlesticks show a clear bullish trend, with higher highs and higher lows.
   • The price has consistently respected the EMA(7) as dynamic support, indicating strong buying interest on dips.

7. Outlook and Strategy:

   • Bullish Case: A breakout above $98,976.91 could pave the way toward testing the $100,000 psychological level, provided the RSI does not become overly extended.
   • Bearish Case: A failure to hold above $97,766.15 (EMA(7)) might lead to a correction, with $96,328.84 (EMA(25)) serving as critical support.

Conclusion:
Bitcoin is showing strong bullish momentum, but traders should monitor the RSI and volume for signs of exhaustion. A breakout above $98,976.91 could spark further upside, while caution is advised near overbought levels.