Bitcoin Price Prediction: Bulls Hold the Line as Momentum Wanes
Bitcoin has been on a wild ride lately, with its price currently hovering around $107,690. This comes after a slight dip from Monday’s impressive peak of over $110,800. While the larger trend still points upwards, there are signs on the intraday charts that the bulls might be losing steam, especially as Bitcoin bumps up against some tough resistance levels.
What’s Happening With Bitcoin’s Price?
In the past couple of days, Bitcoin has been trying to find its footing just below the $110,000 mark. It briefly flirted with levels above $111,000 but couldn’t quite hold on. If you take a look at the daily chart, you’ll see that Bitcoin is hitting resistance at the 0.786 Fibonacci retracement level around $109,536. It’s been a bit of a struggle to keep the bullish momentum going after slipping back below the 0.618 Fibonacci level, which sits at $107,597.
The Technical Picture
On the technical front, there’s quite a bit of overhead resistance around the $110,600 to $111,000 range. This zone has proven to be a stubborn supply block, and unless Bitcoin can break through convincingly, we might see the price capped in the short term.
The 4-hour chart paints a clearer picture of the challenges ahead. A bearish divergence is emerging, signaling that the bulls need to dig in and defend the support zone around $106,000. If they succeed, we might see Bitcoin stabilize and possibly make another push for higher ground.
The Bigger Picture
Despite these short-term hurdles, the broader outlook for Bitcoin remains positive. The cryptocurrency market has been in an overall uptrend, and Bitcoin’s ability to hold key moving averages is a promising sign for investors. However, traders are keenly watching to see if any further downside pressure will emerge.
In conclusion, while Bitcoin’s momentum has cooled a bit below $111,000, the bulls are still defending crucial support levels. It will be interesting to see if they can gather enough strength to break through the resistance and continue the upward trajectory.
Image Credit: cryptorank.io
