The market has been showing signs of strength, especially with the recent rally breakout. This suggests that the downtrend may be losing steam, increasing the likelihood of an upward breakout. Altcoins are also looking promising, with several coins potentially completing their corrections and gearing up for the next upward move in Q1.
Bitcoin is at a pivotal juncture. The price is testing key resistance levels, and breaking through them could open the door for further upside potential. On the weekly Bitcoin chart, Bitcoin remains in a larger bull market. Although there has been a slight slowdown recently, it mirrors a pattern that will be seen in 2023. In October of that year, a bullish crossover on the MACD preceded a significant upward move that could repeat itself.
MicroStrategy's recent purchase of Bitcoin is one of the main reasons behind Bitcoin's recent rise. Led by Michael Saylor, the company continues to bet on the long-term value of Bitcoin. This rally is also part of a larger trend in the cryptocurrency market, fueled by factors such as:
Institutional interest: Large companies and investors are becoming more involved with Bitcoin.
Clearer regulations: More countries are providing clearer rules, making investors more confident.
Positive Economic Signs: Global financial concerns are leading people to view Bitcoin as a safe haven asset.
Bitcoin as a reserve: More companies are seeing Bitcoin as a valuable asset to hold for the long term.
What's next for Bitcoin?
Looking at the daily chart, Bitcoin has reacted to the 23.6% Fibonacci retracement level. This is an important support level that is often seen during corrective phases. While it is possible that Bitcoin’s current pullback may be complete, more evidence is needed before confirming this.
Bitcoin has yet to confirm a local top. The recent rally began early yesterday, and it is important to note key resistance levels. The first key level to watch is the previous high of $97,450. If Bitcoin tests and breaks above this level, it could signal further upward movement.