$BTCUSD Resistance Tested, Momentum Signals a Decision Point
Summary:
The updated BTC/USD 4-hour chart highlights a crucial juncture as Bitcoin approaches $105,000, a major resistance level. Momentum indicators and price action suggest the market is at a decision point, where a breakout or pullback will determine the next direction. Let’s dive into the details:
Key Observations:
Bitcoin is testing a significant resistance level at $105,000, which aligns with the upper boundary of an ascending wedge and a critical psychological level.
A breakout above this level could trigger a rapid move toward higher targets, including the 1.618 Fibonacci extension at $110,762.
Rounded Resistance Formation:
The parabolic curve suggests strong upward momentum but also hints at exhaustion near current levels. Historically, similar formations have resulted in short-term corrections.
Fibonacci Support Levels:
0.618 Level: $97,449—This level serves as the immediate support if a pullback occurs.
0.382 Level: $94,307—A stronger support zone, with historical significance and confluence from previous price action.
Momentum Indicators:
MACD: The MACD shows signs of flattening, indicating weakening momentum but has not yet crossed into bearish territory. A clear cross would confirm a short-term reversal.
RSI: The RSI is currently in overbought territory, which historically aligns with pullbacks or consolidation periods.
Potential Price Structure:
Bullish Case:
Breakout Above $105,000: A breakout with strong volume could push Bitcoin toward $110,762, the 1.618 Fibonacci extension, and potentially beyond.
Momentum Reset: A slight consolidation above $102,535 followed by renewed momentum could signal sustained bullish continuation.
Bearish Case:
Rejection at $105,000: A failure to break the resistance may lead to a pullback, with immediate support at $102,535 and stronger support zones at $97,449 and $94,307.
Overbought Indicators: RSI in overbought territory and a flattening MACD increase the likelihood of a short-term correction.
Key Levels to Watch:
Resistance:
$105,000: Current resistance level and critical psychological barrier.
$110,762: The 1.618 Fibonacci extension and next upside target after a breakout.
Support:
$102,535: Near-term support if a pullback begins.
$97,449: 0.618 Fibonacci retracement and first major support zone.
$94,307: 0.382 Fibonacci retracement and critical historical support.
Conclusion:
Bitcoin is at a pivotal resistance level of $105,000, with momentum indicators signaling caution. A breakout above this level could drive prices toward $110,762, while a rejection may lead to a pullback to $97,449 or $94,307. The market is showing signs of overextension, but volume and momentum in the next few sessions will determine the direction.
Are you betting on a breakout to $110,000 or preparing for a pullback to key supports? Share your thoughts below! 🚀📉
The updated BTC/USD 4-hour chart highlights a crucial juncture as Bitcoin approaches $105,000, a major resistance level. Momentum indicators and price action suggest the market is at a decision point, where a breakout or pullback will determine the next direction. Let’s dive into the details:
Key Observations:
Bitcoin is testing a significant resistance level at $105,000, which aligns with the upper boundary of an ascending wedge and a critical psychological level.
A breakout above this level could trigger a rapid move toward higher targets, including the 1.618 Fibonacci extension at $110,762.
Rounded Resistance Formation:
The parabolic curve suggests strong upward momentum but also hints at exhaustion near current levels. Historically, similar formations have resulted in short-term corrections.
Fibonacci Support Levels:
0.618 Level: $97,449—This level serves as the immediate support if a pullback occurs.
0.382 Level: $94,307—A stronger support zone, with historical significance and confluence from previous price action.
Momentum Indicators:
MACD: The MACD shows signs of flattening, indicating weakening momentum but has not yet crossed into bearish territory. A clear cross would confirm a short-term reversal.
RSI: The RSI is currently in overbought territory, which historically aligns with pullbacks or consolidation periods.
Potential Price Structure:
Bullish Case:
Breakout Above $105,000: A breakout with strong volume could push Bitcoin toward $110,762, the 1.618 Fibonacci extension, and potentially beyond.
Momentum Reset: A slight consolidation above $102,535 followed by renewed momentum could signal sustained bullish continuation.
Bearish Case:
Rejection at $105,000: A failure to break the resistance may lead to a pullback, with immediate support at $102,535 and stronger support zones at $97,449 and $94,307.
Overbought Indicators: RSI in overbought territory and a flattening MACD increase the likelihood of a short-term correction.
Key Levels to Watch:
Resistance:
$105,000: Current resistance level and critical psychological barrier.
$110,762: The 1.618 Fibonacci extension and next upside target after a breakout.
Support:
$102,535: Near-term support if a pullback begins.
$97,449: 0.618 Fibonacci retracement and first major support zone.
$94,307: 0.382 Fibonacci retracement and critical historical support.
Conclusion:
Bitcoin is at a pivotal resistance level of $105,000, with momentum indicators signaling caution. A breakout above this level could drive prices toward $110,762, while a rejection may lead to a pullback to $97,449 or $94,307. The market is showing signs of overextension, but volume and momentum in the next few sessions will determine the direction.
Are you betting on a breakout to $110,000 or preparing for a pullback to key supports? Share your thoughts 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.