After a powerful outbreak last week that Bitcoin pushed in a new all time of all time From $ 118,667, the world’s leading cryptocurrency seems to take a breathing break. From the moment of writing, Bitcoin acts around $ 117,953, slightly below the recent peak. The movement followed a series of consecutive daily profit when Bullish Momentum wiped over the crypto industry.
In a technical analysis shared on the TradingView platform, Crypto analyst Rlinda be on two scenarios that can take place in the coming days and weeks, depending on About how Bitcoin responds To nearby resistance and support levels.
Related lecture
Support zones can influence Bitcoin’s next big move
Rlinda’s Technical Analysis starts with Identifying the meaning of Bitcoin’s recent of all time high. Although Bitcoin has been introduced, which seems to be a consolidation phase, there is no confirmed top yet. The market structure Still in favor of bullish continuation, Especially considering that Bitcoin just comes from a long -term consolidation zone of two months and enters a realization phase.
According to the 1-hour candlestick price graph, Bitcoin is currently just above a support area below $ 117,500. If Bitcoin does not hold this zone, the leading cryptocurrency can kick off Cascade of corrections that could Drive the price to $ 115,500, then possibly to $ 114,300, and even back to the previous all times of $ 111,800.
Below the 0.5 and 0.705 Fibonacci can act as temporary cushions respectively around $ 113,031 and $ 111,960. The last major defensive purchase zone is around $ 110,400, where bulls can intervene for a bouncy. In short, what this means is that if Bitcoin loses the support level at $ 115,500, this can slip back to $ 110,000 before it encounters another strong merchant support zone.
Picture of TradingView: Rlinda
Bitcoin up to $ 125k, but it must first break through resistance
On the other hand, Bitcoin can still push over $ 118,000 and rise to $ 125,000, but only under certain conditions. The condition of the continuation of the rally depends mainly on Bitcoin, which registers a decisive daily closure of $ 118,400 and $ 118,900. In her words, a daily close to these price levels would indicate a ‘Breakout of Structure’. This in turn would be a transition from consolidation to Another impulsive phase up.
Essentially, Both the Bearish and Bullish -Outlooks Depending on how Bitcoin reacts with one of the important zones, support for $ 116,700 or resistance above $ 118,400 before a directional move makes. However, it is important to note that consolidation could last for weeks or even months after last week’s meeting, just as we have seen this cycle in earlier rallies.
According to the long -term holder, net unrealized profit and loss (NUPL) Metriek van Glassnode, Bitcoin’s current level of long -term profit sensitivity is 0.69. This is particularly associated with euphoric market conditions under the 0.75 point, despite the fact that Bitcoin has just printed a new all time.
Related lecture
Bitcoin spent about 228 days above 0.75 euphoria threshold in the previous bull market cycle. This current cycle, on the other hand, has seen only about 30 days above that level, which suggests that holders have not yet completely left profit in the long term and the leading cryptocurrency has not reached any overheated circumstances.
Featured image of Unsplash, graph of TradingView