Bitcoin is currently facing strong resistance at $104,600, and as it approaches this level without a clear breakout yet, the likelihood of a price correction increases during tonight, especially if reversal candles appear on the 4-hour timeframe or if the local support at $101,000 is broken.
Key technical indicators:
• RSI is nearing overbought territory, which may indicate weakness in the upward momentum.
• Failure to break the current resistance with a decline in trading volume may pave the way for a downward retracement towards $98,600 and then $94,600.
Levels to watch:
• Breaking $101,000 = first signal for correction.
• Continued failure to surpass $104,600 with a bearish candle = confirmation of the correction possibility.
We advise cautious monitoring tonight and not opening new buy positions until the next movement becomes clear.
Technical alert: If one of the major support levels is broken, we may witness a broader correction movement over the next two days.