As the new trading week approaches, Bitcoin investors are closely watching for signs of volatility, particularly near the end of the day as the close of the weekly candle approaches. Bitcoin spent the weekend consolidating, but this could signal a potential breakout.
Looking at the bigger picture, Bitcoin’s current price action is framed within a larger cycle that began in late 2022. According to Elliott Wave theory, the market has gone through multiple waves, and we may be approaching the end of the current cycle. The first wave was completed in April 2023, followed by a series of corrections and rallies. Currently, the market appears to be completing wave five, which could signal a new high before a significant correction.
Short-Term Price Action: Identifying Support and Resistance
For short-term traders, Bitcoin’s price action has been consolidating with minimal movement over the weekend. The closest support levels are between $95,900 and $96,530. A move above the $98,500 level would provide confirmation of a fresh rally, with key resistance levels at $99,000 and $100,200.
Key Fibonacci Levels and Potential Upside Targets
The next key resistance target for Bitcoin is seen in the $30k region, a significant Fibonacci level. This level could act as a milestone, signaling the final push in this cycle. However, even if Bitcoin reaches this level, it could see a larger correction afterward.
Will Bitcoin Drop to $90k Levels?
In a recent interview with CNBC, “Mad Money” host Jim Cramer recommended $90,000 as the next price point for those looking to buy Bitcoin. He explained the importance of monitoring Bitcoin’s price and said that $90,000 could be a good entry level for new investors. Cramer believes that Bitcoin’s long-term potential makes it a solid investment, even at higher prices.
