Bitcoin Price Analysis: Potential Uptrend Amid Key Resistance Levels
According to Cointelegraph, Bitcoin is currently finding support at $107,245, reflecting positive investor sentiment as minor dips are consistently being bought. The cryptocurrency is attempting to recover from its moving averages, indicating buying interest during price declines. Although trading slightly below its all-time high of $111,980, Bitcoin is not yet considered overvalued. Cryptoquant contributor Axel Adler Jr. noted that the Mayer multiple stands at 1.1x, which falls within the neutral range of 0.8 to 1.5x.
The price of Bitcoin is currently squeezed between the 20-day exponential moving average at $107,314 and general resistance at $110,530. The upward slope of the 20-day EMA and the relative strength index in the positive territory indicate a potential bullish breakout. If Bitcoin surpasses the $110,530 resistance, it may challenge its all-time high of $111,980 and then test the neckline of the inverse head and shoulders pattern. Sellers are expected to defend this neckline vigorously, as a break above it would complete the bullish setup, potentially leading to a rally towards a pattern target of $150,000.
However, this optimistic outlook could be invalidated if the price declines and falls below the 50-day simple moving average at $106,642. This move could prompt short-term buyers to secure profits, leading the pair to drop to $104,500 and then to $100,000. On the 4-hour chart, Bitcoin finds support at $107,245, indicating that every slight dip is being bought. If buyers manage to push the price above the descending trend line, the evolving channel pattern will be invalidated, increasing the likelihood of a breakout above $110,530. Should this occur, the pair could rise to $111,980, and then to $113,500.
Conversely, the bearish setup will be confirmed if the price trades and breaks below $107,245, which could plunge the pair to the pattern target of $103,960. It is important to note that this article does not provide investment advice or recommendations. Every investment and trading decision involves risks, and readers are encouraged to conduct their own research before making any decisions.
