Bitcoin Makes a Comeback: BTC Reclaims Spotlight as Crypto Market Rekindles Confidence

While the year-end crypto crash of 2024 left many investors reeling, the dawn of 2025 has brought a wave of optimism.

Bitcoin [BTC] price has been on a rollercoaster ride over the last few months. After hitting a new all-time high above $108,000 in early December, the world’s largest cryptocurrency went on to lose over $20,000.

This recent decline has now brought BTC back below the $92,000-mark. However, a new analysis has highlighted some interesting trends in the Bitcoin market.

According to a recent analysis by Santiment, BTC exited the “extreme greed” market sentiment zone for the first time since early November. This shift follows a prolonged period of bullish price action, largely influenced by the U.S. presidential election and speculation around a strategic Bitcoin reserve.

The analysis noted that such an exit from the “extreme greed” zone could be crucial for Bitcoin. This is because the sustained “greed” in November was observed ahead of a minor top and sell-off pressure.

Now, as BTC traders are seen ‘resetting’ on their bullish enthusiasm, it might be setting up Bitcoin for another leg of sustainable growth.

This newfound balance in market sentiment is further supported by technical indicators on lower time frames. A bullish MACD crossover on the daily chart and Bitcoin’s position above the 20-day MA suggested an optimistic outlook.

Bitcoin Price Analysis: Key Levels to Watch Out For

One-Day Chart

Bitcoin price showed signs of recovery from the lower support at $90,664. At press time, BTC price was seen trading at $97,771, reflecting a 3% weekly gain. However, the coin was priced slightly down by 0.23% in daily movements.

A bullish MACD crossover was observed on the daily chart. Furthermore, the Relative Strength Index (RSI) stood at 63, indicating strength in the bullish momentum.

Bitcoin price showed strong resistance at $100,000 and support at $90,664. In case of a breakout from either side, traders can expect the next levels of resistance and support at $102,843 and $88,373, respectively.

Four-Hour Chart

On observing the four-hour chart, Bitcoin price formed a bullish ascending triangle pattern. This pattern usually suggests a continuation of the prevailing trend. In this case, since BTC price was trading within an uptrend, the pattern pointed toward a further bullish breakout.

Moreover, the Awesome Oscillator showed bullish momentum, while the Bollinger Bands were expanding, suggesting high price volatility.