Bitcoin Price Weekly Outlook
The recent price activity of Bitcoin initially exhibited a bearish trend following last week’s close. However, the bulls succeeded in upholding the bullish structure around the $90,000 level, subsequently pushing towards the $98,000 resistance. Although the price retracted, it concluded the week at $93,638. Analysts anticipate that the bulls will make another attempt at the $98,000 resistance this week, with aspirations of reaching the upper threshold of this resistance zone at $103,500, provided they can maintain price levels above $98,000. Early in the week, the support at $91,400 may face testing, which is crucial for the bulls to sustain their upward momentum.
Key Support and Resistance Levels
The bulls have shown progress, gradually overcoming overhead resistance. This week, they aim to re-establish the $94,000 level as short-term support. Sustaining this momentum could lead to renewed challenges against the $98,000 resistance, potentially advancing towards the upper boundary of $103,500. A closure at the higher end of this zone may signal a move to the next significant resistance range between $106,000 and $109,000. This area is expected to present formidable resistance; however, if bullish strength persists, the $116,000 mark, aligned with the 0.786 Fibonacci retracement level, could be targeted.
It is essential for the bulls to defend the $91,400 level robustly. A failure to maintain this level would likely bolster the bears’ confidence, enabling them to push prices lower. The $87,000 level is projected to act as a containment threshold, potentially opening the pathway to the major support level of $84,000. If the $84,000 support is breached, a decline into the low $70,000 range could occur.
Outlook For This Week
It is anticipated that the bulls will seek to capitalize on their recent momentum as the week progresses. Should they regain the $94,000 level early in the week, another test of the $98,000 resistance is likely. Conversely, bearish pressure may test the $91,400 support; however, if this level holds, the bullish sentiment will likely persist, paving the way for additional attempts at $98,000. A closure above $98,000 is expected to facilitate movement toward $103,500.
Market Mood: Slightly Bullish – The bulls have demonstrated a degree of resilience by successfully defending the $90,000 region last week, indicating a favorable price action trend as the week unfolds.
The Coming Weeks
The bulls have managed to maintain some momentum in the previous week; however, they are now entering areas of substantial resistance. If they can advance beyond the $100,000 mark, they will approach a region susceptible to significant price reversals. The range of $103,500 to $109,000 is expected to pose considerable challenges, and it would not be surprising to witness prices being pushed back down from this zone over the upcoming weeks. Maintaining support in this area will be crucial in determining whether this rally may continue toward new highs or if it might yield to new lows below $80,000.
Terminology Guide:
Bulls/Bullish: Refers to buyers or investors anticipating an increase in price.
Bears/Bearish: Refers to sellers or investors expecting a decrease in price.
Support or Support Level: A price level at which the asset is expected to hold, at least initially. A greater number of touches at support may weaken its integrity, increasing the likelihood of a failure to sustain price.
Resistance or Resistance Level: The inverse of support; a level likely to impede the price movement initially. Increased touches may also weaken resistance, making a breach more probable.
Fibonacci Retracements and Extensions: Ratios based on the golden ratio, which pertains to growth and decay cycles found in nature. The golden ratio derives from the constants Phi (1.618) and phi (0.618).
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