Key Takeaways:
– Bitcoin’s price has begun a recovery wave, currently looking to solidify above the crucial $100,000 mark.
– A significant bullish trend line starts to develop, offering support at $98,000.
– The BTC/USD pair could experience another increase if it retains support above the $95,000 area.
– Bitcoin tests major resistances at $100K and $100.5K, with potential highs reaching up to $108.5K.
– Technical analysis indicates increased bullish momentum, putting significant support and resistance levels under the spotlight.
Bitcoin Rallies Above $98K
After much anticipation, Bitcoin (BTC) price has kicked off a recovery wave above the $98,000 mark. Presently trading above $98,500 and the 100-hourly Simple Moving Average (SMA), the leading cryptocurrency seems to be grappling to secure its position above the much-anticipated $100,000 level.
The recovery wave started when BTC managed to leap over the $95,000 hurdle, followed by successive breakthroughs at $96,500 and $97,200. Propelled by bullish forces, the digital asset successfully crossed the key barrier at $98,000, eventually reaching a high at $100,731.
Consolidating above Key Support Levels
At present, Bitcoin’s price is consolidating gains well above the 23.6% Fibonacci retracement level. This level represents an upward movement from the $89,114 swing low to the recent high of $100,731. The BTC/USD pair currently hovers above $98,800, well-supported by the 100-hourly SMA and the emerging bullish trend line.
On the path to higher strides, Bitcoin encounters immediate resistance near the much-coveted $100,000 level. Breaching this resistance could present a new set of challenges with the first significant resistance lying near $100,500. Overcoming this could escalate the price further with potential resistance seen at $104,000.
Potential for Further Upsides
A close above the $104,000 resistance may instigate a further price hike. In such a case, Bitcoin might aim for the $106,000 resistance level. Any additional gains beyond this point could propel the price towards a potential high of $108,500.
Possibility of a Downside Correction
However, all may not be rosy for Bitcoin. If it fails to conquer the $100,000 resistance zone, the crypto king could experience a renewed decline. Quick support on the downside is close to the $98,000 level, protected by the trend line. A more substantial support level can be found near $97,350.
Beyond this, additional support lies near the $95,000 zone, or at the 50% Fib retracement level. This is an upward move from the $89,114 swing low to the recent peak of $100,731. Any more losses might direct the digital asset price toward the $93,200 support in the near future.
Technical Indicators
From a technical viewpoint, the short-term outlook for Bitcoin seems promising. The hourly MACD shows that Bitcoin is currently gaining pace in the bullish zone. The hourly Relative Strength Index (RSI) for BTC/USD is also above the 50 level, indicating a strong bullish momentum at play. As the major digital currency navigates significant support and resistance levels, the budding sustainability of this breakout remains to be observed.