Bitcoin’s recent pullback may be a retest of a higher-time-frame demand zone, potentially setting up a bullish reversal. Key support levels between $102,000 and $104,000 are crucial for maintaining the current bullish outlook.
What to Know:
- Bitcoin’s recent pullback may be a retest of a higher-time-frame demand zone, potentially setting up a bullish reversal.
- Key support levels between $102,000 and $104,000 are crucial for maintaining the current bullish outlook.
- Despite macro uncertainties and ETF saturation, Bitcoin’s technical chart remains relatively clean and indicative of potential upside.
Bitcoin’s recent price action may have formed a paradoxical bullish setup, presenting an opportunity for traders and investors. Despite initial appearances, the underlying structure suggests a reset that could favor further upside. This technical perspective offers a counterpoint to prevailing market sentiments.
A well-known trader, DonAlt, who accurately predicted previous market movements, sees the current pullback as a retest of a higher-time-frame demand zone. This zone previously acted as the breakout base for the current rally, suggesting its importance as a support level. The analysis frames Bitcoin’s move from $120,000 to $104,000 as a crucial retest.
Confirming this bias, the monthly and weekly charts indicate a dip into prior resistance-turned-support and compression above $100,000. The daily chart hints at the formation of a higher low structure around the $102,000-$104,000 range. These technical indicators align to support the potential for a bullish continuation.
Should Bitcoin hold this support zone, it could act as a launching pad for a surge towards $130,000 and beyond. Conversely, losing this level could see the price retreat to a lower support block near $82,000-$89,000. This area represents the last untouched liquidity zone from early 2024, making it a critical level to watch.
Despite macro uncertainties and ETF saturation, Bitcoin’s technical chart offers a relatively clear map. Unlike assets influenced by fundamentals or earnings cycles, Bitcoin’s price action is primarily driven by levels and liquidity. This technical clarity provides a degree of predictability, even if the current setup isn’t ideal.
In conclusion, Bitcoin’s current technical structure suggests a potential bullish continuation if key support levels hold. Investors and traders should monitor these levels closely to gauge the likelihood of a move towards higher price targets. While market conditions remain dynamic, the technical outlook provides a valuable perspective.
Related: Cardano Bull Setup Points to December Rally
Source: Original article
Quick Summary
Bitcoin’s recent pullback may be a retest of a higher-time-frame demand zone, potentially setting up a bullish reversal. Key support levels between $102,000 and $104,000 are crucial for maintaining the current bullish outlook. Despite macro uncertainties and ETF saturation, Bitcoin’s technical chart remains relatively clean and indicative of potential upside.
Source
Information sourced from official Ripple publications, institutional research, regulatory documentation and reputable crypto news outlets.
Author
Ripple Van Winkle is a cryptocurrency analyst and founder of XRP Right Now. He has been active in the crypto space for over 8 years and has generated more than 25 million views across YouTube covering XRP daily.
Editorial Note
Opinions are the author's alone and for informational purposes only. This publication does not provide investment advice.
