The Bitcoin price suffered a 9% reversal, equivalent to around $9,000, after it came within touching distance of the $100,000 price level. It now appears this reversal could be over, and Bitcoin bulls look to be taking charge again. Can this fight-back achieve an all-time high?
This last reversal only took four days to play out, but did succeed in lopping off more than $9,000 from the top. As Bitcoin climbs towards that magical figure of $100,000, it may take more than a couple of runs at it before this level breaks. In addition, volatility is likely to be high.
Long term holders selling or technical indications responsible for dip?
As Bitcoin starts tracking upwards again, many across social media are blaming the Bitcoin long term holders for this latest reversal. This could partly be the case, but from a technical perspective indicators were signalling that it was time for some kind of retrace. That the long term holders were selling into this top would perhaps explain how the $BTC price came down as far as it did.
Source: TradingView
The 8-hour chart shows the $BTC descent from that top just short of $100,000. That the price came all the way back to the deepest Fibonacci retracement at 0.786 shows that this was a decent correction, and one that the market probably very much needed.
What also acted as support was the 50 SMA (blue line), and the fact that all the short-term time frame momentum indicators had bottomed and were now starting to cross back up.
Bullish on the monthly time frame
Source: TradingView
Zooming very much further out into the macro monthly time frame, it can be seen that things are very bullish for Bitcoin. That said, the price has stopped short of the 1.618 Fibonacci and it might be expected that this will be a tough nut for bulls to crack, given that it coincides with the ascending trendline from the double top of the last bull market.
Looking further down the chart, the Stochastic RSI is showing a cross up of the fast line (blue) over the slow line (red), which signals upside price momentum that could last for the next few months. Also, at the bottom of the chart, the Relative Strength Index is showing that the indicator line is poking its head above the descending trendline that started back in 2021 - yet another bullish indication.
There could be another rejection of the $100,000 price level still to come, but overall, looking out into the first half of 2025, and into the latter stage of the bull market, the $155,000 price level at the 2.618 Fibonacci is certainly a proposition.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
