On Monday (December 16), Bitcoin slightly retreated to $104,600 after breaking through $106,641 to set a new all-time high. The market is active, with a 24-hour trading volume reaching $82 billion and a market capitalization soaring to $2.08 trillion. Technical analysis indicates that moving averages are unanimously positive, but the MACD suggests caution in the short term.
On the 1-hour chart, Bitcoin recently broke through $105,000, highlighting a strong bullish breakout that reached the historical high of $106,533. Short-term support is around $104,000, with resistance currently at the historical new high.
High trading volume indicates strong participation enthusiasm, and a pullback to $104,000-$104,500 may present a golden buying opportunity for traders targeting $106,500 or higher prices.
The 4-hour chart has solidified Bitcoin's steady rise, with the peak of $106,533 reinforcing the bullish narrative. Support levels remain stable between $102,500 and $104,000, while resistance extends to $108,000.
A drop or consolidation around $104,000 may lay the groundwork for more bullish trades, although breaking through $106,500 looks promising with substantial trading volume backing it.
On the daily chart, Bitcoin's upward trend occasionally encounters setbacks, but overall sentiment is clearly bullish. Key support levels at $100,000 and $104,000 underpin this trend, while the peak of $106,533 serves as key resistance.
If Bitcoin closes above this level, it may surge towards $110,000, while a drop to $104,000-$105,000 is the best entry point for long-term investors.
The Relative Strength Index (RSI) is at 69, and the stochastic indicator is at 89, suggesting the market is in a neutral state and approaching overbought conditions, while the Moving Average Convergence Divergence (MACD) indicates caution in the short term as bearish signals continue to flash.
Moving averages, including the Exponential Moving Average (EMA) and Simple Moving Average (SMA), are quite bullish across 10, 20, 30, 50, 100, and 200-day periods, consistently lagging behind the current price.
Bitcoin has set a historical high of $106,533, coupled with bullish momentum across multiple time frames and strong support at key levels, indicating a positive outlook for continued price increases.
With moving averages consistently showing positive signals and sustained trading volume supporting the trend, Bitcoin appears poised to reach $108,000 in the coming trading days, potentially even hitting $110,000.
Although the bullish momentum of Bitcoin is undeniable, conditions of overextension include proximity to the key resistance level of $106,533, as well as neutral signals from oscillators such as the Relative Strength Index (RSI) and stochastic indicators, increasing the likelihood of short-term profit-taking.
A drop below $104,000 could signal a reversal, with increased selling pressure posing a risk of a pullback to $102,500 or lower.