Bitcoin (BTC/USD) looks ready to test a key area of interest after seeing a mid-week downswing!
Will the crypto pair find support from a previous resistance zone?
Here’s what we’re seeing on the 4-hour time frame!
Bitcoin (BTC/USD) 4-hour Chart by TradingView
After a strong start to the week, bitcoin is seeing sharp pullbacks, possibly as traders lock in January gains and dial back risk ahead of a busy run of economic data.
At the same time, the U.S. dollar is finding its footing as markets look past mixed releases and focus on stronger-than-expected U.S. services data, reinforcing the idea that the U.S. economy is still holding up better than much of the rest of the world.
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on the U.S. dollar and the bitcoin, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
BTC/USD tagged a January high near $94,700 earlier this week before sliding back toward the $90,700 area and taking a breather.
What makes this area stand out is how close price is to the $90,000 handle, which lines up with the Pivot Point and the 61.8% Fibonacci retracement of the 2026 upswing.
A clean bounce from $90,000 keeps the door open for a retest of the $94,700 highs, and possibly a push toward fresh 2026 highs above $96,000.
On the flip side, a few more red candles and sustained trade below $90,000 could invite heavier selling pressure and pull BTC/USD down toward $88,000, where the 100 and 200 SMAs and the lower end of the ascending channel come into play.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment!
Disclaimer:
Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
