Analysis of the BTC Chart (Dec 27, 2024)Key Observations:
Support Holding Firm:
Price bounced off the Bear Day level (~$94,700) with a strong reaction, showing that buyers are defending this zone. This could indicate that the downside momentum is fading.
Resistance Tests:
BTC tested the Bull Day zone (~$96,800) but faced rejection, indicating resistance. However, price is consolidating just below this level, signaling a possible breakout attempt.
Volume and Activity:
The recent consolidation shows reduced volatility, which often precedes a significant breakout. Volume patterns could provide additional confirmation.
Bullish Indications:
The Bullish Week support (~$97,200) remains intact and could act as the next target if BTC breaks through $96,800 convincingly.
Higher lows are forming near $95,600-$96,000, indicating a bullish structure if maintained.
Bearish Risks:
Failure to reclaim and hold above the Bull Day zone ($96,800-$97,200) could result in a retracement to test the Close Week support ($95,200) again.
A loss of this support level would negate the bullish setup and signal more downside.
Is a Large Move to the Upside Likely?
BTC is setting up for a potential upside move, but confirmation is needed:
Bullish confirmation: A breakout above $96,800-$97,200 with strong volume would likely trigger a move towards $98,400 and possibly higher.
Bearish invalidation: A breakdown below $95,200 could trigger further downside to the Bear Day zone (~$94,800).
Key Levels to Watch:
Upside targets: $96,800, $97,200, and $98,400 (Bullish Swing level).
Downside risk levels: $95,600, $95,200, and $94,800.
Conclusion: The market structure is leaning towards a bullish breakout if BTC can clear the nearby resistance zones. However, keep an eye on volume and lower supports for invalidation of the setup.
