Bitcoin must close above $99,800 to confirm the uptrend and break out of its short-term range. Failure to maintain momentum could push Bitcoin towards key support levels at $95,100 and $92,300. ETF outflows remain a concern, but bullish sentiment is supported by positive regulatory signals and Trump’s crypto-friendly stance.
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Bitcoin has stabilized after the volatility of early February and is now moving within a narrow range.
The cryptocurrency faced resistance at $97,700 this month and found support around $95,300. Buying activity in the second half of the week helped the price stabilize. It closed above $97,700 yesterday and moved into the $98,000 range.
This move indicates a possible uptrend and pushed Bitcoin above the short-term exponential moving average levels. For the trend to be consolidated, Bitcoin needs to close the week above $99,800.
If it gains momentum, it will break the 0.144 Fibonacci resistance and exit its short-term range, attracting more buyers, which could push the cryptocurrency towards the next resistance area of $104,000 to $106,000.
The resistance area represents the top of the consolidation phase that started in December. If Bitcoin breaks through this area, the coin could gain momentum towards $118,000 - $122,000 and then $124,000, in line with the middle line of its trading channel.
The Stochastic RSI indicator on the daily chart is showing strong bullish momentum, indicating a potential upside. However, Bitcoin must break the resistance level below $100,000 with increased trading volume to confirm the uptrend.
Conversely, if the coin loses momentum and stays below $99,800, the pressure on the market could increase. The selling pressure could push the price towards the 3-month EMA at $95,100, which acts as a short-term support. If Bitcoin drops below this level, it could drop to $92,300.
A daily close below this could lead to $86,400 as the next support. If the decline continues, the price could target the $74,000 to $80,000 range.
Trump's Pro-Crypto Stance Boosts Market Confidence
Bitcoin's recent surge over the past two days came after US President Trump reiterated his positive stance on cryptocurrency markets.
Speaking at the Future Investment Initiative Institute conference in Miami, Trump said that Bitcoin’s record prices reflect the market’s confidence in it. His supportive remarks have renewed hopes that the United States may create a Bitcoin reserve. Reports that some states are working on creating a Bitcoin reserve have also added to the market’s optimism.
Other positive factors include growing confidence in US crypto regulations, which has helped to limit bearish price action. Speaking this week, Atlanta Federal Reserve President Raphael Bostic predicted two interest rate cuts in 2025 due to a slowing labor market. The statement was seen as a bullish signal for Bitcoin.
Despite the recent positive developments, spot Bitcoin ETFs have seen significant outflows that have impacted the price. Over the past three days, spot Bitcoin ETFs in the US have recorded nearly $500 million in withdrawals. Bitcoin’s rally towards $98,000 indicates bullish momentum, but continued outflows could increase selling pressure.
Key Support and Resistance Levels for Bitcoin
Resistance Levels: $99,800: A daily close above this level could strengthen the uptrend. $104,000 - $106,000: Target area if the uptrend continues. $112,000 - $118,000: Potential acceleration points if Bitcoin breaks the consolidation. $124,000: Main target for the medium-term uptrend. Support Levels: $95,100: 3-month EMA support.
$92,300: Could be tested if Bitcoin closes below this level.
$86,400: First strong support area if selling pressure increases.
$74,000 - $80,000: Key support area if the decline continues. Consolidation (horizontal movement) If Bitcoin stays between $95,100 and $99,800, the market direction will remain uncertain. Buyers and sellers may wait for a breakout as volume increases. Stochastic RSI indicates bullish potential, but Bitcoin should break $100,000 with strong momentum.
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