Bitcoin Price Analysis – Bullish Setup with Caution AheadThe short-term trend is bullish, as we observe:
- Price movement is above the short- and medium-term moving averages.
- The price is forming higher highs and higher lows.
- Support levels are steadily rising along the moving averages.
However, there is a noticeable loss of momentum in recent hours, which could signal a potential short-term correction or profit-taking phase.
Bullish Indicators
Moving Averages:
- The 10 EMA, 20 EMA, and 30 EMA are all indicating a Buy signal.
- The 200 EMA also reflects a Buy signal.
- This indicates that the price is trading above key averages, supporting the continuation of the bullish trend.
ADX = 29.49 (Buy): The strength of the current trend is still significant (above 25), which reinforces the continuation of the bullish movement.
MACD (Buy): The MACD has shown a positive crossover, which supports the bullish signal and continued upward momentum.
Bearish Indicators
Momentum = Sell (Value: 4,249.13): There is a noticeable slowdown in momentum, which may indicate the early stages of a correction or temporary weakness.
Some Long-Term Averages = Sell: The 50, 100, and 200 Simple Moving Averages are showing sell signals, suggesting the longer-term trend has not yet fully transitioned into a bullish phase. These may also act as resistance if the price continues to rise.
Stochastic RSI Fast = 90.56 (Overbought): This indicator is in the overbought zone, pointing to a potential near-term pullback.
RSI = 53.34 (Neutral to Overbought): Not yet in the overbought territory, but gradually approaching it, which should be watched closely.
2025 Performance Lagging: The latest chart shows that 2025 performance is currently at -6.46%, compared to a strong +111% in 2024. This discrepancy suggests a phase of ongoing profit-taking or broader consolidation.
Outlook
Short-Term (Hours to Days): There is a potential for further upside with key resistance levels at 88,500, 89,000, and 90,000.
The nearest support levels are at 87,500 and 86,800.
However, caution is advised due to signs of short-term exhaustion in indicators like Stochastic RSI and Momentum.
Medium-Term (Weeks): As long as the price holds above the 86,000–86,500 range, the uptrend is likely to continue. A breakout above 90,000 would be a strong bullish signal that could drive the market to new highs.
Recommendation
- For Short-Term Traders: Take advantage of the current move but remain cautious of sudden corrections.
Watch for potential buy zones near 87,000 and 86,500. Use a tight stop-loss strategy if these support levels are broken.
- For Medium/Long-Term Investors: Indicators show that the uptrend is starting to stabilize.
Consider partial entry now while closely monitoring the 90,000 level.
Avoid going all-in at current levels and keep capital aside to buy dips if the market corrects.
