On Monday (December 16), Bitcoin briefly broke through $106,641 to set a new all-time high and then slightly retreated to around $104,600. The market is active, with a 24-hour trading volume reaching $82 billion and a market capitalization soaring to $2.08 trillion. Technical analysis points to consistent bullish signals from moving averages, yet the MACD indicates that caution is still warranted in the short term.
Bitcoin has shown strong bullish momentum in recent trading, breaking through the key psychological level of $105,000 and reaching the historical high of $106,533. This breakout marks a significant enhancement in market sentiment, accompanied by high trading volume that indicates strong enthusiasm among participants.
Short-term support is considered around $104,000, which is a key buying area. Resistance is currently near the historical high of $106,500, with high trading volume accompanying price breaks suggesting the market may be entering a phase of higher price exploration. When prices pull back to the range of $104,000 to $104,500, it could present an entry opportunity for short-term traders, with target prices set at $106,500 or higher. If buying strength continues to remain strong, Bitcoin is expected to rise further, initiating a new round of upward momentum. Bitcoin's new all-time high not only reflects the current bullish sentiment but may also stimulate activity in other crypto assets and altcoin markets, further boosting market liquidity and attention.
The 4-hour chart consolidates Bitcoin's steady ascent, with the peak at $106,533 reinforcing the bullish narrative. Support holds steady between $102,500 and $104,000, while resistance extends to $108,000.
A drop or consolidation around $104,000 might lay the groundwork for more bullish trades, although a breakout above $106,500 seems promising due to substantial trading volume support.
The overall upward trend of Bitcoin on the daily chart, although occasionally fluctuating, remains strong. Key support levels at $100,000 and $104,000 provide a solid foundation for the current price action, while the peak at $106,533 constitutes a significant resistance level. If Bitcoin can successfully break through and close above this level, it may trigger further upward movement, potentially targeting $110,000.
Meanwhile, a pullback to the $104,000-$105,000 area presents an excellent entry opportunity for long-term investors. This range is supported technically and reflects strong buying power. In the context of ample market liquidity and heightened sentiment, Bitcoin is expected to maintain its upward trend and act as a core driver of activity in the crypto market.
The Relative Strength Index (RSI) is at 69, and the Stochastic Indicator is at 89, indicating that these oscillators suggest the market is in a neutral state and close to overheating, while the Momentum and Moving Average Convergence Divergence (MACD) indicate that caution is needed in the short term due to flashing bearish signals.
Moving averages, including 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 new all-time high at $106,533, coupled with bullish momentum across multiple timeframes and strong support at key levels, indicating a favorable outlook for continued price increases.
With moving averages consistently showing positive signals and sustained trading volume supporting the trend, Bitcoin seems poised to reach $108,000 in the coming trading days, possibly even hitting $110,000.
Despite the undeniable bullish momentum of Bitcoin, conditions of excessive expansion include proximity to the key resistance level of $106,533, as well as neutral signals from oscillators like the Relative Strength Index (RSI) and Stochastic Indicator, 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 retracement to $102,500 or lower.
