Key Support and Potential Breakthrough in Bitcoin's Pullback
Currently in a pullback phase, although it recently touched a high of $111,970, the price has now pulled back. So, can Bitcoin regain its upward momentum? Here is a summary of the current situation, analyst predictions, and technical analysis.
Current Situation
Price Performance: The current price of Bitcoin is $103,993, down from the recent high of $111,970, indicating that the market is experiencing a pullback.
Short-term Trend: Down 0.18% in the last 24 hours, suggesting that the price is still under downward pressure.
Analyst Predictions
Some analysts are optimistic about Bitcoin's future:
Target Price: It is predicted that Bitcoin is expected to break through $340,000.
Key Condition: The prerequisite is that the Bitcoin price must hold above the key support range of $91,000 to $100,000.
Theoretical Basis: Based on the three-year CUP-HANDLE pattern formed by Bitcoin, which is a bullish technical pattern that typically signals a large breakout after consolidation.
“CUP”: From the drop of $69,000 in 2021 to stabilization in March 2024.
“HANDLE”: Recent consolidation below $112,000.
Technical Analysis:
The current price trend and technical indicators of Bitcoin provide further insights:
Downward Channel: The price is currently within a downward channel, with both highs and lows gradually declining, which is a typical feature of a consolidation phase.
Key Resistance Level: The 50-period moving average ($105,292) is an important resistance level limiting the recent uptrend.
Key Support Level: The Fibonacci 0.236 retracement level ($104,514) is the current support being tested. If this level is broken, the price may further decline to $103,149 or lower.
MACD: The histogram is negative, but the signal line is converging, suggesting a potential reversal.
RSI: Below 40, the market is slightly oversold but has not yet shown a clear reversal signal.
Bullish Conditions
For Bitcoin to regain upward momentum, the following conditions need to be met:
Break the Downward Channel: The price needs to close above $105,292 to break the current downward trend.
Strong Candlestick Pattern: Bullish signals such as engulfing patterns need to appear.
Short-term Target: After breaking through, the price may rebound to $106,719 to $107,682, after which a larger upward movement may occur.