On Bitcoin’s 4-hour chart, the price is still in a short-term uptrend after bouncing strongly from the $108,000 support zone.
Key Support and Resistance Levels
Main Support: $112,000, which has acted as a strong support multiple times and now serves as the base of the current uptrend.
Secondary Support: $108,000, overlapping with a major demand zone (purple box) and the level where the most recent rally started.
Immediate Resistance: $116,500 – $117,400 (green box), previously acting as a strong supply zone that rejected price before.
Major Resistance: $122,000 – $126,000, the recent local top. A breakout above this zone could open the door for a continuation of the uptrend toward higher levels.
Price Action and Market Structure
Currently, Bitcoin is forming higher lows, pushing toward the supply zone. The short-term ascending trendline (blue line) is acting as dynamic support, signaling that buyers remain in control in the short term.
As long as the price stays above $112,000, the bullish scenario remains valid, and the next target will likely be a retest of $116,500 – $117,400.
Possible Scenarios
Bullish Scenario:
A breakout and close above $117,400 could trigger a new bullish wave toward $122,000.
If accompanied by strong volume, the rally could extend toward $126,000.
Bearish Scenario:
Failure to break $117,400 and a breakdown below the ascending trendline would likely push the price back to $112,000.
Losing this support level could lead to a deeper correction toward $108,000.
Conclusion
Bitcoin is currently in a decision zone. Breaking above $117,400 could spark a fresh rally, while rejection from this level and a trendline breakdown could trigger a deeper correction. Traders should pay close attention to volume near the resistance zone and how price reacts to the ascending trendline.
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