The key support and resistance levels ahead for BTC/USD are as follows:
Third key resistance level of BTC/USD: 120000
Second key resistance level of BTC/USD: 115360
First key resistance level of BTC/USD: 111930
First key support level of BTC/USD: 108500
Second key support level of BTC/USD: 105500
Third key support level of BTC/USD: 101000
The Beginning of a Downtrend or the Continuation of an Uptrend in Bitcoin?
As previously noted in the analysis of Bitcoin, the market leader in cryptocurrencies, there was a lack of excessive optimism regarding the continuation of the upward trend in the charts. The price reaching support levels such as $108,500 was likely for a correction, and ultimately, this scenario has materialized.
In long-term timeframes such as monthly and weekly, the prevailing trend is still interpreted as bullish. However, due to the peaks formed in the chart and the price being in an overbought state, buying plans may potentially carry risks.
Currently, the price has halted further declines upon reaching the support zone of $111,930 – $108,500, with some risk-tolerant buyers active in this area. The formation of spinning top and shooting star candlestick patterns over the past three days indicates a weak upward movement and uncertainty among traders about continuing the trend.
Given the recent decline in the market value of cryptocurrencies, we are witnessing increased hesitation among traders (with fear present among them) regarding a potential continuation of the uptrend. In this context, for a resumption of downward activity, we need to see prices stabilize below the key level of $108,500. If this occurs, the market may lose hope for further upward movement, with the price potentially reaching support levels of $105,500 and $101,000.
Bitcoin and Potential Upward Movement Ahead
In a bullish scenario, as long as the price remains above the key level of $108,500, there is potential for upward movement and reaching resistance levels of $111,930 and, in a more extreme case, up to $115,900.
