BTCUSD Weekly Analysis 27/01/2025

Fundamental Analysis
Bitcoin surged to a new all-time high of $109,588 this week, fueled by President Trump’s inauguration and his executive order to develop a national digital asset stockpile. Institutional demand is rising, with CryptoQuant highlighting increased large-investor activity. However, a 6.68% pullback from the ATH to $105,000 suggests profit-taking and potential resistance.

Santiment data shows heightened greed and FOMO, hinting at a possible short-term correction. Key support lies at $102,000, while a break above $109,588 could push BTC higher. Traders should brace for volatility as further policy announcements unfold

2. Key Resistance Levels

• 107,265 (H4 Liquidity): Anticipated selling pressure as price approaches this zone.

• 105,161 (H4 FVG): A fair value gap acting as a near-term resistance, ideal for potential bearish rejections.

3. Key Support Levels and Sell Targets

• 99,462 (H4 Liquidity): First bearish target where consolidation or a short-term bounce is likely.

• 95,846 (Daily FVG): Unfilled gap that could act as a magnet, drawing price lower.

• 89,164 (Daily Liquidity): Major support zone where significant buying interest may emerge.

4. Trading Plan

Bearish Bias:

• Watch for rejections at 107,265 or 105,161, signaling short entries.

• Targets: 99,462 (H4 Liquidity), with extensions to 95,846 (Daily FVG) and 89,164 (Daily Liquidity).

Bullish Setup:

• Monitor price action at support levels 99,462, 95,846, and 89,164 for reversal patterns like bullish engulfing or order block formations.

• Long positions: Target a recovery toward 105,161 or 107,265.

5. Summary

• BTCUSD- A bearish Rejection targeting lower liquidity levels, with potential reversals at key supports.. Traders should remain cautious around support zones, as these areas may present reversal opportunities for a bullish recovery.

• Use your strict money management rules to manage risks effectively.

Technical analysis

1. Overview of Momentum and Market Structure

• Current Momentum: Bearish Rejection at previous ATH 108364.

• Previous Week's Performance: Bearish Rejection at previous All Time High.

• Range: 99462–109356.

• Expectations: A bearish move targeting lower liquidity levels.