After conducting a detailed analysis of Bitcoinâs recent price movements, I observed that it has managed to hold above the critical $94,200 support level. Despite facing resistance at higher levels, Bitcoin seems to be forming a base that might fuel a fresh upward move, provided it breaks key resistance zones.
Recent Performance
In my analysis, Bitcoin initially declined below the $98,000 support zone, slipping further to $96,500 and even below $95,000. The price reached a low of $94,314 before stabilizing and beginning a slight recovery. This recovery took the price above the $96,650 level, surpassing the 61.8% Fibonacci retracement level of the drop from $98,267 to $94,314.
Currently, the price remains below $97,500 and the 100-hour simple moving average. Additionally, a bearish trend line has formed with resistance around $97,800, which is crucial for the next price movement.
Potential Upside Movement
Based on my research, the first significant resistance is at $97,800, near the 76.4% Fibonacci retracement level. If Bitcoin clears this hurdle, the next major resistance lies at $98,000. A solid close above $98,000 could open the doors for a rally to $98,800 or even $100,000.
If bullish momentum sustains, Bitcoin could further target $102,000, signaling a strong recovery.
Downside Risks
On the flip side, if Bitcoin fails to break the $98,000 resistance zone, another correction may follow. My analysis highlights $96,500 as the first support level. A break below this could lead to a decline toward $95,000 or even $94,250. Further weakness might drag Bitcoin toward the $92,000 support level, indicating a bearish phase.
Key Technical Insights
MACD: The Moving Average Convergence Divergence (MACD) is losing momentum in the bearish zone, suggesting potential stabilization.
RSI: The Relative Strength Index (RSI) remains below 50, indicating that selling pressure still dominates.
Critical Levels to Monitor
Support Levels: $96,500, $95,000, and $94,250.
Resistance Levels: $97,800, $98,000, and $98,800.
In conclusion,my detailed analysis shows that Bitcoin is at a critical juncture. A successful breakout above $98,000 could trigger a strong rally toward $100,000 or higher. However, failure to clear this resistance might lead to a retest of lower support levels, with $92,000 as the ultimate downside target in the near term.
This analysis emphasizes the importance of monitoring key levels closely and staying cautious amid ongoing market volatility.
#BTCNextDirection? #MarketCorrection #bitcoinâď¸ #BTCâ #BTCUSDT. $BTC