$BTCUSD Expansion or Reversal? Key Levels to WatchBITSTAMP:BTCUSD
Overview
We explore the key resistance and support levels, potential pattern formations, and what we should monitor in the coming sessions.
Bitcoin appears to be forming an expanding triangle within the broader range of its weekly fractals. Additionally, there is the potential emergence of a double top reversal pattern . This pattern has a critical support level at $89,164, which acts as a neckline. A breakdown below this support could threaten the weekly fractal support positioned at $91,530. If the breakdown confirms , Bitcoin may experience a significant decline, targeting the previously broken monthly fractal resistance at $73,794 , representing a potential 17% drop . This level coincides with the 200% Fibonacci extension, often seen as a default target for a double top reversal.
Despite the downside risks, a corrective move lower may provide a bullish setup. A key support level at $76,368 aligns with the 161.8% Fibonacci extension of the last bullish swing. A potential Bullish Deep Crab Pattern could form around this level, indicating a possible reversal. If Bitcoin reaches this zone, traders should monitor price reactions for signs of recovery.
Will Bitcoin break higher, or is a deeper correction on the horizon? Stay tuned for further updates!
Key Takeaways
Weekly Fractal Resistance: $109,359
Weekly Fractal Support: $91,530
Daily Fractal Resistance: $98,871 (rejecting 38.2% Fibonacci retracement at $98,314)
Daily Support: $93,340 (above weekly fractal support)
Critical Support Level: $89,164 (neckline for a potential double top)
Downside Target: $73,794 (previous monthly fractal resistance, aligning with 200% Fibonacci extension)
Bullish Reversal Zone: $76,368 (161.8% Fibonacci extension, potential Bullish Deep Crab Pattern)
It is important to remain neutral regarding bias unless the price confirms the pattern with a breakdown below the neckline. Until that happens, the market structure remains open to different scenarios, and traders should focus on confirmation signals rather than assumptions.
Happy Trading,
André Cardoso
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