$BTCUSD Resistance Tested, Momentum Signals a Decision Point Summary:
The updated BTC/USD 4-hour chart highlights a crucial juncture as Bitcoin approaches $105,000, a major resistance level. Momentum indicators and price action suggest the market is at a decision point, where a breakout or pullback will determine the next direction. Let’s dive into the details:
Key Observations:
Bitcoin is testing a significant resistance level at $105,000, which aligns with the upper boundary of an ascending wedge and a critical psychological level.
A breakout above this level could trigger a rapid move toward higher targets, including the 1.618 Fibonacci extension at $110,762.
Rounded Resistance Formation:
The parabolic curve suggests strong upward momentum but also hints at exhaustion near current levels. Historically, similar formations have resulted in short-term corrections.
Fibonacci Support Levels:
0.618 Level: $97,449—This level serves as the immediate support if a pullback occurs.
0.382 Level: $94,307—A stronger support zone, with historical significance and confluence from previous price action.
Momentum Indicators:
MACD: The MACD shows signs of flattening, indicating weakening momentum but has not yet crossed into bearish territory. A clear cross would confirm a short-term reversal.
RSI: The RSI is currently in overbought territory, which historically aligns with pullbacks or consolidation periods.
Potential Price Structure:
Bullish Case:
Breakout Above $105,000: A breakout with strong volume could push Bitcoin toward $110,762, the 1.618 Fibonacci extension, and potentially beyond.
Momentum Reset: A slight consolidation above $102,535 followed by renewed momentum could signal sustained bullish continuation.
Bearish Case:
Rejection at $105,000: A failure to break the resistance may lead to a pullback, with immediate support at $102,535 and stronger support zones at $97,449 and $94,307.
Overbought Indicators: RSI in overbought territory and a flattening MACD increase the likelihood of a short-term correction.
Key Levels to Watch:
Resistance:
$105,000: Current resistance level and critical psychological barrier.
$110,762: The 1.618 Fibonacci extension and next upside target after a breakout.
Support:
$102,535: Near-term support if a pullback begins.
$97,449: 0.618 Fibonacci retracement and first major support zone.
$94,307: 0.382 Fibonacci retracement and critical historical support.
Conclusion:
Bitcoin is at a pivotal resistance level of $105,000, with momentum indicators signaling caution. A breakout above this level could drive prices toward $110,762, while a rejection may lead to a pullback to $97,449 or $94,307. The market is showing signs of overextension, but volume and momentum in the next few sessions will determine the direction.
Are you betting on a breakout to $110,000 or preparing for a pullback to key supports? Share your thoughts below! 🚀📉
