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.
Source: Original article
