Bitcoin (BTC) Shows Early Signs of Recovery, but Confirmation Needed Above Resistance Levels

Bitcoin (BTC), the world's largest digital asset, officially ended January at $102,412, marking its first monthly close above $100,000.

Bitcoin price analysis: BTC edges lower but bulls remain hopeful

Bitcoin price dropped on Monday, continuing its recent seesaw moves as it struggles to sustain upward momentum. However, technical traders highlight a potential morningstar pattern on lower timeframes, suggesting opportunities for long positions.

BTC’s early signs of recovery, but sustained momentum is key

As institutional accumulation continues to drive up the demand for Bitcoin, relative strength index (RSI) on the 1-hour chart shows early signs of recovery from oversold levels. This observation aligns with the recent price action, where BTC attempts to rebound after Friday’s sell-off.

However, to confirm bullish continuation, technical traders would want to see a definitive breakout above resistance, followed by sustained upward price action. If Bitcoin fails to hold gains, we could see renewed selling pressure emerging in the volatile crypto market.

Bitcoin price showing potential early signs of recovery, but confirmation is needed above resistance.

After Friday’s 1.86% decline, BTC dropped another 1.54% on Monday, closing at $101,041. However, Bitcoin managed to stay above $100,000, mempertahankan crucial psychological support level.

Bitcoin price trades at $100,419, showing a 1.87% decrease in the last 24 hours and a 0.64% loss over the past seven days. BTC’s market capitalization remains at $1.98 trillion, suggesting continued interest from investors.

Despite the recent price declines, BTC remains below key moving averages, signaling persistent bearish pressure. A failed breakout above $105,000 triggered strong selling, pushing Bitcoin to intraday lows.

However, a crucial level to watch on the lower timeframe is $102,200 for recovering losses. A failure to reclaim this mark could drive BTC below $99,800.

Bitcoin price dropped to $99,000, its lowest level since Monday’s correction, before rebounding. The cryptocurrency now trades marginally up, aiming to reclaim six-digit territory.

Meanwhile, altcoins suffered heavier losses, with SOL, DOGE, LINK, AVAX, LTC, and HYPE posting nearly double-digit declines.

In the past day, heightened market volatility led to over $500 million in liquidations, with Binance witnessing the largest single liquidation order, amounting to nearly $12 million. As BTC navigates key levels, traders are on high alert for potential market shifts.