Bitcoin came within striking distance of new all-time highs on Jan. 22, but now “the door is open” to a 5% drop.
Data from Cointelegraph Markets Pro and TradingView shows that Bitcoin (BTC) price action is within a critical range, and market observers have key support levels ready.
Spotlight on $100,000 BTC price support
For Keith Alan, co-founder of trading resource Material Indicators, it is all about $100,000.
In the short term, that level is arguably the most attractive downside target thanks to a wall of bid liquidity supporting it being removed.
A chart of liquidity conditions on Binance uploaded to X on Jan. 22 puts the likelihood of a support retest firmly in perspective.
“The door to retest $100k is open,” Alan summarized.
BTC/USDT liquidity data for Binance. Source: Keith Alan/X
The chart additionally shows how comparatively thin bid liquidity is compared to the sell wall above the spot price at $110,000, now the major hurdle for bulls to overcome.
That level has not gone unnoticed within trading circles, with commentator Bitcoin Munger identifying it as a selling target for Bitcoin whales.
Bitcoin needs to print higher daily closes
Looking above, trader and analyst Rekt Capital sees BTC/USD in a narrower range, but with breakout signal levels nearby.
On daily timeframes, a “confluent support area” around $100,000 is still valid, while a push beyond $106,000 is all that is needed to set up a run at all-time highs.
“The confluent support area (green circle) has indeed acted as a floor that has enabled consolidation within the $101k-$106k range. Bitcoin is once again challenging the Range High for a breakout attempt from the range,” he said in an X post on Jan. 21.
“Daily Close above the $106k resistance followed by a post-breakout retest could enable a historic move to new All Time Highs.”
BTC/USD 1-day chart. Source: Rekt Capital/X
A large range comes courtesy of fellow trader Daan Crypto Trades, who likewise sees price discovery entering should BTC/USD start printing daily candle closes above $108,000.
“Think most are better off just waiting patiently until this either sweeps the range high/low again or if we go full on price discovery mode,” he wrote in accompanying commentary.
“Likely choppy until then.”
BTC/USDT perpetual swaps 1-day chart. Source: Daan Crypto Trades/X
“Looking good so far”
Offering a hopeful short-term outlook, Patric H, the analyst known as Cryptelligence on X, shows key technical levels being preserved.
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These include the point of control, or PoC, of Bitcoin’s weekly range, currently around $103,000.
Patric H added that, per Elliott Wave theory, Bitcoin’s latest low-timeframe correction should be complete. “It's looking good so far,” he concluded.
“The corrective wave 4 seems to be finished for $BTC and the Altcoins market. Bitcoin is trading well above the local POC, suggesting a bullish continuation.”
BTC/USD 1-week chart. Source: Patric H/X
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.