In light of the current volatility in the cryptocurrency market, the most important question remains: Is it the right time to buy Bitcoin at current prices?

Let us analyze the attached technical chart carefully and review the safest scenarios for the investor and trader.

Overview of Bitcoin movement

The chart shows that Bitcoin (BTC/USDT) has undergone a strong upward wave, surpassing levels of $104,000, currently reaching the area of $106,900. This upward movement was accompanied by significant technical breakouts (BoS) and a clear change in trend behavior (CHoCH), but the price has recently begun a slight downward correction after reaching accumulated resistances above $110,000.

Main support and resistance areas

  • Most important support:

    The area of $104,565 – $104,444 (shaded green on the chart), which is an area from which the price rebounded strongly in the past, making it an attractive point for potential buyers.

    Nearest resistance:

    Areas above $110,000, where dense red rectangles indicate strong sell offers, and the price has failed to break through them so far.

Is buying now appropriate?

From a technical perspective, buying at the current price ($106,900) is not ideal for the following reasons:

  • The price is close to a previous resistance, which reduces profit margins and increases the likelihood of a correction.

    Signs of a slight downward correction are appearing, indicating that buyers may need more support before resuming the upward trend.

    There are currently no strong upward reversal signals on the timeframe being used.

When is buying safe?

There are two main scenarios for safe buying entry:

  1. Strong rebound from the support area $104,565 – $104,444:

    If the price drops to this area and a strong reversal candle (like a Pin Bar or Engulfing) appears on the hourly chart, this indicates a return of buyers and the possibility of a new upward movement.

    Clear breakout of resistance areas above $110,000:

    If the price successfully breaks this resistance with a strong close, it means new buying liquidity has entered, and we may see a new upward wave toward record levels.

Tips for trade management

  • Do not enter a buy from the current price; rather, wait for one of the two previous scenarios.

    Set a stop loss below the strong support area (e.g., $104,000) if you decide to buy after a rebound.

    Set your initial target at resistance areas ($110,000), with the possibility of raising targets if strong buying momentum emerges.

    Monitor candlestick patterns and trading volume at support and resistance levels to confirm the decision.

Summary

Buying now is not technically advisable, and it is better to wait for the price to drop towards a strong support area or break the resistance at $110,000.

Capital management and stop-loss are essential in all cases, and do not hesitate to reassess your position with every strong movement or the appearance of new reversal signals on the chart.

If a strong reversal candle or a change in momentum appears at support, send the chart image again to receive updated analysis and a more precise entry opportunity.

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