After last week’s strong breakout Pushing Bitcoin to the newest ever The world-leading cryptocurrency, at $118,667, appears to be taking a break. At the time of writing, Bitcoin has traded around $117,953, just below its recent peak. The move followed a series of consecutive daily profits as bullish momentum was infused throughout the crypto industry.
In a technical analysis shared on the TradingView platform, Crypto analyst Rlinda pointed to two scenarios that could unfold in the coming days and weeks. How Bitcoin responds To nearby resistance and support levels.
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Support Zones could affect the next big move in Bitcoin
Rlinda’s technology The analysis begins Identify the most recent and most important Bitcoin has ever had. Bitcoin is in what appears to be a consolidation phase, but there are no confirmed tops yet. Market structure Still prefers to continue bullishly, In particular, when we consider Bitcoin, we will emerge from the long-term, two-month consolidation zone and enter the realization phase.
According to the one-hour Candlestick Price Chart, Bitcoin is currently trading just above the support area for under $117,500. If Bitcoin fails to hold this zone, major cryptocurrencies could kick off Cascade of possible fixes It will return the price to $115,500, potentially $114,300, and even a previous high of $111,800.
Under that, the 0.5 and 0.705 Fibonacci levels can be around $113,031 and $111,960 levels, respectively, to serve as temporary cushions. The final major defensive zone is around $110,400, and the Bulls could intervene for a bounce. Essentially, what this means is that if Bitcoin loses its support level at $115,500, it could potentially return to $110,000 before encountering another strong purchase support zone.
It’s from Bitcoin to $125,000, but you must first violate the resistance
Bitcoin, on the other hand, can still increase to $125,000, above $118,000, but only under certain conditions. The status of the rally’s continuity will primarily rely on Bitcoin registering a decisive daily closure, exceeding $118,400 and $118,900. In her words, daily closures above these price levels suggest a “structural breakout.” This confirms migration from integration Another impulsive phase upward.
Essentially, Both bearish and bullish outlook It depends on how Bitcoin responds in any of the key zones. Support at $116,700 or move in direction after resistance exceeds $118,400. However, it is important to note that, as we saw at the meetings before this cycle, consolidation after last week’s meeting could last weeks or months.
According to long-term holders net unrealized profits and losses (NUPL) Metrics from GlassNode, Bitcoin’s current long-term profitability sentiment level is 0.69. This is below the 0.75 mark, particularly related to the euphoric market situation, despite Bitcoin’s new all-time highs being printed.
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Bitcoin spent an euphoric threshold of 0.75 on the previous bull market cycle about 228 days above. In contrast, this current cycle only looks at that level for about 30 days. This suggests that long-term holders have not yet completely eliminated profits, and that major cryptocurrencies have not reached overheated conditions.
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