The pressure point on bitcoin is $103,890 as critical resistance, hinting the short term price turbulence before any durable rally.
Analysts have a warning on likely fakeouts that may interrupt bullish momentum and entrap late long entries.
The long-term goals are still bullish and cites $140,000 as the possible upside if major levels are maintained.
The latest price movement on Bitcoin has caught the attention of the market participants as the asset exploded above $103,000 in an aggressive upward move. Based on the reading of technical analysts tracing the current chart configuration, the increase in BTC positions it at the proximity of a critical resistance area noted as the “last area of defense for bears”. Despite this breakout, experts warn that market conditions may not be set for a clean continuation towards higher levels more in the short term with turbulence.
https://twitter.com/CryptoJelleNL/status/1920829002253582655 Choppy Price Action Expected Before Further Upside
According to analysts of the Chart, the current price zone (between $103,000 and $106,000) might prove to be a significant region propitious to induce unpredictable price action. In the past, this region has been a supply zone where selling pressure continues to enter the market.
Traders are looking for potential fakeouts, which is also known as “scammy price action,” as sharp pullbacks or consolidation phases will take out momentum and shake out the late long positions. The prevailing sentiment among several observers is that this may be within the coming weekly to fortnightly period, as short-term optimism may be tested by sudden corrections or range-bound activity.
Support and Resistance Key to Short-Term Strategy
At present, Bitcoin is trading at approximately $103,337, reflecting a 4.0% increase over the last 24 hours.Analysts have identified support at $99,263.70 where there may be cushioning from any downside retracements.
The resistance remains strong at $103,890 just above the current price indicating a push from bullish continuation and bearish rejection. The traders are being cautioned against the impulsive kind of long entries at these highly elevated levels but rather to consider dip-buying strategies in the event that price recaptures more favorable support areas.
Long-Term Outlook Maintains Bullish Bias
Despite the cautious near term-market analysts expect a more favorable long term. Others see Bitcoin as paving the way for an extended rally, and it is being suggested that $140,000 could become a longer term target if accumulation persists and key resistance levels are decisively overcome. Nevertheless, such a projection depends on stability and sustained demand in the coming weeks.Seeing all this in summary current technical indicators signal possible volatility prior to further upside.
