BTC/USD breaks through the $100,000 milestone as market sentiment improves

BTC/USD experienced a swift rebound after a strong downside rejection at the key $90,000 support zone, breaking through the psychological $100,000 barrier and signaling a resurgence of bullish momentum.

Market sentiment improved on news that the incoming Trump administration plans to overhaul U.S. SEC cryptocurrency policies immediately upon taking office next week.

Key Republican officials at the SEC are set to introduce rules clarifying when cryptocurrencies qualify as securities and aim to end the crypto crackdown led by the previous Democratic SEC chair. The progress of these policy changes is expected to directly influence cryptocurrency price dynamics, with the improved outlook likely to continue supporting price gains.

However, fresh bullish momentum may face resistance around the $100,000 barrier, reinforced by the top of the thick daily Ichimoku cloud. Repeated failures to sustain gains above this level suggest potential profit-taking, particularly given overbought conditions on the daily chart. Any dips are expected to be limited and could present opportunities for repositioning ahead of another upward push.

Initial support levels are seen at the $98,300-$98,100 zone (10-period MA on the 4-hour chart and the 23.6% Fibonacci retracement of the $89,039-$100,924 recovery leg), followed by $97,570 (200-period MA on the 4-hour chart). Further declines are unlikely to extend beyond the $96,500 support area.

A decisive break above $100,000 would pave the way for a test of $102,770 (Jan 7 lower high) and potentially target $103,830 (76.4% Fibonacci retracement of the $108,400-$89,038 drop).

Res: 100100; 102730; 103830; 104030
Sup: 98300; 98100; 97570; 96400