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Bitcoin at $110,000: Breakout or Correction?
Bitcoin $BTC ($BTC ) Technical Analysis
Bitcoin is experiencing strong upward momentum, approaching critical resistance at $110,000, a point that could determine the next direction: a historic breakout or a temporary correction?
Chart Description
Timeframe: 4-hour chart.
Trend: Upward, with rising highs and lows.
Resistance: $110,000 (psychological and historical), $114,000 (potential target).
Support: $104,000, $102,000.
Indicators:
RSI: At 73, approaching overbought levels.
Moving Averages: MA50 and MA200 support the uptrend.
Patterns: No reversal patterns, supporting the uptrend.
Chart: Japanese candlesticks on the 4-hour chart, with support and resistance lines at the mentioned levels.
Analysis and Forecasts
Bullish Breakout: If Bitcoin breaks $110,000 with strong trading volume, the next target is $114,000, and possibly $120,000-130,000.
Correction: If rejected at $110,000, the price could drop to $104,000 or $102,000, with a potential correction extending to $85,000-95,000.
Overbought: RSI at 73+ warns of a potential correction.
Trader Advice
Watch $110,000: Open long positions on a breakout with targets at $114,000, or sell on a rejection with a target of $104,000.
Risk Management: Place a stop loss below $104,000 to buy, or above $110,000 to sell.
Whale Movements: Monitor trading volume to detect overbought conditions. Altcoins: Be wary of liquidity withdrawals if Bitcoin continues to rise.
Summary
Bitcoin is testing historic resistance at $110,000. The uptrend is intact, but overbought conditions indicate a potential correction. A breakout could push the price to $114,000 and above, while a failure could send it back to $104,000. Make wise decisions!