Bitcoin is currently at a critical point, moving within key support and resistance levels. Keeping the support could propel it to $120,000, but breaking it might lead to a slide to $50,000-$55,000.
Importance of Key Support
Captain Faibik points out that Bitcoin's trajectory heavily relies on its ability to hold support. A potential rise to $120,000 is possible if Bitcoin rebounds from current support levels. However, a break may trigger a drop toward the $50,000-$55,000 range. A weekly close below the 50-week moving average at $76,000 may turn the sentiment bearish.
Price Action and Market Structure
Bitcoin is trading in an ascending channel since late 2022, maintaining an upwards trend. It reached the upper edge of the channel and fell 5.34% to $82,590 after a rejection. However, the long-term support in the form of the 100-week moving average continues to maintain an optimistic outlook. A bounce off the lower edge of the channel may confirm the trend's continuation. Otherwise, a break may indicate a change in momentum and potential downwards pressure.
Critical Levels and Market Sentiment
Bitcoin's historical resilience is evident through its pattern of recovery. In early 2022, after a decline, it began rising. Throughout 2023 and into the first half of 2024, BTC has maintained an upward trajectory. The current support and resistance levels within the market structure still hold. However, the recent decline suggests increased selling pressure, which may indicate potential weakness. Bitcoin could see further declines if it fails to hold the current level.
Bitcoin's future movement hinges on its ability to maintain key support levels. The upward potential remains possible with a bounce, but the preservation of this support is crucial, or the risk of decline increases.
