Bitcoin’s (BTC) price action has recently been marked by significant volatility, with key levels of support and resistance playing crucial roles in determining its next move. As Bitcoin’s price continues to trend downward, all eyes are on two critical price points: the $97,000 resistance level and the $64,000 support level. According to the cost basis distribution, these two levels represent significant psychological and technical barriers that could influence Bitcoin’s future direction.
Key Levels: $97K Resistance and $64K Support
The cost basis distribution chart, which tracks the accumulation of Bitcoin by holders at different price levels, reveals some important insights. The strongest resistance for Bitcoin is found at $97,828, where a large amount of BTC—360,470 coins—were accumulated. This level is a significant technical barrier, and historically, Bitcoin has struggled to break through such high-density accumulation zones unless there is a surge in demand or a strong catalyst, such as a bull cycle or an increase in ETF inflows.
On the other hand, support for Bitcoin sits at $64,078, where 194,530 BTC were acquired by buyers. This level has served as a critical zone for buyers in the past, helping to prevent Bitcoin from falling further during previous corrections. If Bitcoin drops toward this price range, it could once again attract buyers looking to capitalize on lower prices, much like it has done before.
Recent Price Action and Potential Scenarios
Bitcoin’s price action in recent months has showcased significant momentum. The price surged from $55,000 in September 2024 to a peak above $108,000 in early 2025. However, this recent retracement from near $100,000 has brought Bitcoin closer to the upper bounds of its support zone, particularly between $60,000 and $75,000, where heavy buying pressure has been evident.
If Bitcoin fails to break through the $97K resistance and instead continues to trend downward, it could see further corrections towards $75,000 before eventually testing the $64,000 support level. A drop below $64,000 would be concerning, as it could signal further downside potential, possibly pushing Bitcoin toward $55,000.
Conversely, if Bitcoin manages to break above the $97K resistance and hold that level, it could trigger a new uptrend, possibly reaching new all-time highs beyond $108,000. A breakout above this level would likely be driven by increased demand or other positive catalysts that could propel Bitcoin into the next phase of its bullish cycle.
The Role of the 50-Week Moving Average
Another critical technical factor in Bitcoin’s price action is its interaction with the 50-week moving average (MA), which currently sits at $74,700. Historically, Bitcoin has often tested this moving average after strong rallies before continuing its upward trajectory. In previous cycles, such as in 2015, 2019, and 2021, Bitcoin approached the 50-week MA, found support, and then bounced back significantly.
Currently, Bitcoin’s price is moving toward the $74,700 support zone after retracing from its recent high of around $97,000. If Bitcoin holds above its current level of around $85,000, there could be a rebound, possibly testing the $90,000 resistance. However, if Bitcoin loses support around the $74,700 level, a deeper correction towards $64,000 could be on the horizon, where significant buying activity has historically occurred.
Conclusion
Bitcoin’s price is at a crossroads, with critical resistance at $97,000 and support at $64,000. The next few weeks will be pivotal in determining whether Bitcoin can reclaim its upward momentum or if it will enter a prolonged correction phase. Traders and investors will be closely watching these key levels, as a break above $97K could signal the start of a new rally, while a drop below $64K could lead to further declines. The 50-week moving average also remains an important factor, as Bitcoin has historically bounced at this level after corrections. With all these factors at play, Bitcoin’s future price action will likely depend on how it reacts to these key support and resistance zones.
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