BitcoinShort
Bitcoin (BTC/USD) Analysis: Correction on the Horizon?
Bitcoin has been on a parabolic rally, recently crossing the critical 1.618 Fibonacci extension level at $96,232. As BTC edges closer to the psychological $100,000 mark, questions arise about whether this momentum can be sustained or if a correction is imminent. Here's a detailed analysis:
Key Observations:
1.Fibonacci Extension Levels
2.Overbought RSI
3.Volume Dynamics
4.Psychological Resistance
5.Potential Support Zones
Scenarios to Watch:
1.Short-Term Correction Likely
2.Continued Rally
Conclusion:
A correction appears increasingly likely in the short term as BTC approaches the psychological $100,000 resistance with overbought conditions. However, the broader trend remains bullish, and any pullback to key Fibonacci support levels could present a buying opportunity for long-term traders.
Key levels to watch: $96,000 (immediate support), $100,000 (resistance), and $74,296 (major support).
Stay cautious and monitor the RSI, volume, and price action around $100,000 to gauge the next move.
Let me know your thoughts! Is BTC primed for a pullback or ready to shatter $100,000? Comment below!
Key Observations:
1.Fibonacci Extension Levels
- The price has decisively broken above the 1.618 Fibonacci level at $96,232, a critical milestone often associated with overextension in trends.
- Historically, price corrections tend to occur after such steep rallies, especially near extended
- Fibonacci levels.
2.Overbought RSI
- The daily RSI is in overbought territory (>70), signaling that the asset may be due for a cooling-off period.
- A potential bearish divergence could emerge if the price forms higher highs while RSI fails to do so, which is a classic precursor to corrections.
3.Volume Dynamics
- While volume supported the initial breakout, it has been relatively muted as Bitcoin approaches $100,000.
- Declining volume in an uptrend often signals waning momentum and increases the likelihood of a pullback.
4.Psychological Resistance
- The $100,000 level is a key psychological barrier, likely to trigger profit-booking by traders and long-term holders alike.
5.Potential Support Zones
- In case of a correction, watch for support at the previous Fibonacci levels:
- $90,000 (minor support)
- $74,296 (1.0 retracement)
*$66,700 (0.786 retracement)
*
Scenarios to Watch:
1.Short-Term Correction Likely
- If BTC fails to hold above the 1.618 level ($96,232), we could see a pullback toward $90,000 or even deeper to $74,296.
- Bearish RSI divergence or a decline in volume on higher prices would confirm this scenario.
2.Continued Rally
- Consolidation above $96,000, supported by strong volume and neutralizing RSI, could indicate sufficient strength for a breakout beyond $100,000.
- A confirmed breakout with volume could pave the way toward $110,000 and beyond.
Conclusion:
A correction appears increasingly likely in the short term as BTC approaches the psychological $100,000 resistance with overbought conditions. However, the broader trend remains bullish, and any pullback to key Fibonacci support levels could present a buying opportunity for long-term traders.
Key levels to watch: $96,000 (immediate support), $100,000 (resistance), and $74,296 (major support).
Stay cautious and monitor the RSI, volume, and price action around $100,000 to gauge the next move.
Let me know your thoughts! Is BTC primed for a pullback or ready to shatter $100,000? Comment below!
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.