Bitcoin (BTC) has shown a strong bullish reversal from its recent support zone, indicating a potential upward trajectory toward the next resistance level at $108,700. This level previously halted two major corrections (labeled b and ii in wave analysis), making it a critical threshold for traders.
Key Observations
Reversal from Support Area:
BTC rebounded from a confluence of support factors:
- Psychological round number at $100,000 (tested sharply in early June).
- Lower Bollinger Band on the daily chart.
- 38.2% Fibonacci retracement of Wave 1 (April’s upward impulse).
- The reversal formed a Bullish Engulfing candlestick pattern, mirroring early June’s signal.
Resistance Target:
The $108,700 level is now in focus, backed by:
- Historical rejection during prior corrections (b and ii).
- Strong bullish sentiment across crypto markets.
Market Context
- Trend Confirmation: Daily charts confirm an uptrend with higher highs/lows.
- Sentiment: Optimism prevails amid broader crypto market strength.
FAQs
Why is $100,000 a key support level?
Round numbers often act as psychological barriers. BTC’s sharp reversal here—paired with technical indicators—reinforced its significance.
What makes $108,700 a strong resistance?
It previously capped two corrective waves (b and ii), indicating selling pressure. A breakout could signal extended bullish momentum.
How reliable is the Bullish Engulfing pattern?
While not infallible, its recurrence at support zones (like early June) adds credibility when paired with volume and trend confirmation.
Strategic Insights
- Short-Term: Watch for consolidation near $108,700; a breakout may target higher Fibonacci extensions.
- Risk Management: A drop below $100,000 could invalidate the bullish structure.
👉 Explore real-time BTC market trends for deeper analysis.
Disclaimer: This analysis reflects the author’s perspective and not FinanceFeeds’ stance. Cryptocurrency trading carries risks; conduct independent research or consult a financial advisor before acting.
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