Bitcoin Demonstrates Strong 4-Hour Performance – Signs of an Upcoming Upswing

Bitcoin is currently exhibiting signs of recovery as it attempts to break above the $98,000 threshold, potentially signaling the end of an extended period of volatility. For the first time in several weeks, bulls seem to regain strength, suggesting a possible shift towards a stable uptrend. After a lengthy spell of uncertainty, BTC is trading within a crucial range that could dictate its next significant movement.

A decline below the $90,000 support level could jeopardize the current bullish formation and possibly confirm bearish momentum. Conversely, a decisive breakout and a daily close above $100,000 could pave the way for a strong rally and renewed market optimism. As such, the upcoming sessions are vital for both traders and investors.

Analyst Big Cheds has recently observed Bitcoin’s robust technical setup, specifically on the 4-hour chart, where BTC demonstrates considerable strength while testing the upper limits of its trading range. Continued pressure from bulls may indicate the onset of a breakout phase if they can convert resistance into support.

Bitcoin Frustrates Investors as $100K Breakout Remains Out of Reach

Once again, Bitcoin is testing the patience of its investors, struggling to breach the crucial psychological barrier of $100,000. Despite favorable price movements in recent weeks, BTC has not yet reclaimed this benchmark, causing division among market participants about future trends. Some analysts believe the bullish trend is not yet over, anticipating that Bitcoin will surpass its previous all-time high of $109K, while others contend that the current upswing is merely a temporary relief in an overarching bear market structure.

After facing substantial selling pressure and macroeconomic uncertainty over recent months, Bitcoin has regained momentum, reclaiming essential support levels and rising above $97K. This movement has rekindled bullish expectations as the price establishes higher lows while edging closer to the peak of a multi-week range.

Cheds has provided a more optimistic outlook, highlighting Bitcoin’s “exceptional 4H strength” as the price relentlessly approaches range highs. He noted that BTC is exhibiting more resilience than he had initially anticipated, suggesting that bulls maintain control, at least for the moment.

Nevertheless, the $100K level continues to pose a significant resistance point. A confirmed breakout beyond this threshold could affirm a continuation of the bullish market trend. Until that occurs, the market remains in a state of uncertainty, balancing between anticipation and skepticism. Traders are closely monitoring the situation for either a breakout above $100K, which would generate new upward momentum, or a decline below the $92K–$90K range, which would indicate a deeper correction.

In summary, while Bitcoin’s technical setup appears promising, indecision prevails in the market. Whether this situation is setting the stage for new highs or merely a pause before further declines remains to be seen as the next significant movement could heavily influence market sentiment in the coming months.

Technical Insights: BTC Approaching Critical Supply Zone

Bitcoin is currently valued at $96,959, having made a strong recovery from support near $94,000 and regaining short-term momentum. The 4-hour chart indicates a clear effort by bulls to retest the $98,000 resistance zone, just shy of the significant psychological barrier at $100K. The price remains comfortably above both the 200-period simple moving average (SMA) at $88,387 and the 200-period exponential moving average (EMA) at $90,723, reinforcing a bullish framework that has been developing since mid-April.

The recent uptick confirms higher lows and a sustained bullish trend, as BTC builds upward momentum against resistance highs. There has been a slight increase in volume during this latest breakout attempt, indicating a fresh influx of demand. Nonetheless, the $98K–$100K zone has historically spurred selling activity, so a decisive break and closing above $100K will be crucial to confirming a genuine breakout.

If bulls succeed in pushing above $100K, Bitcoin could swiftly move toward its previous all-time peak near $109K. Conversely, maintaining a position above the $94K–$95K area will be vital to sustain bullish momentum. Currently, Bitcoin appears to be positioning itself for a breakout, but traders should remain vigilant as the price approaches resistance. The next significant movement will likely set the direction for the wider market.

Featured image from Dall-E, chart from TradingView