According to expert Ali Charts, Bitcoin may face a brief correction after its recent rise. The TD Sequential indicator is signaling a potential short-term dip.
Current Situation and Price Levels
The recent rally in Bitcoin brought it to the $106,554 level, the 1.0 Fibonacci retracement mark. However, the asset faced resistance there, triggering the TD Sequential sell signal. At the time of Ali's analysis, Bitcoin had retraced to $104,642, indicating potential challenges in maintaining upward momentum.
Support and Resistance Levels
Resistance at the 1.0 Fibonacci level, $106,554, has proven significant, as BTC failed to close above it. If the rally resumes, the next target is the 1.272 Fibonacci extension at $110,180. On the downside, immediate support lies at the 0.786 Fibonacci level around $103,785, with stronger support at $101,663 (0.618 Fibonacci) and the psychological $100,000 mark.
Market Sentiment and Expert Conclusions
Ali noted the market sentiment has reached an 'extreme greed' phase, a sign that often prompts caution among traders. Extreme sentiment indicators can serve as warnings for potential reversals if markets overextend. Some altcoins have started retracing, triggering buy orders among traders. Despite the pullback risk, many maintain cash reserves for flexibility in case of further corrections.
Despite the short-term correction risk, Bitcoin's overall trend remains bullish. If key support levels are upheld, the broader trend could resume targeting higher resistance levels.
