Bitcoin 4-Hour Chart Displays Positive Consolidation – Is It a Typical Continuation Pattern?

Bitcoin is currently trading confidently above the $100,000 threshold, recently hitting a local peak of approximately $104,300. After a period of volatility and uncertainty, bullish sentiment has taken control, revitalizing momentum across the entire cryptocurrency market. As BTC approaches key supply levels reminiscent of its previous all-time highs, there is growing optimism that this breakout could signal the onset of a sustained upward movement.

The market as a whole appears to be revitalizing, with altcoins following the upward trend set by Bitcoin and liquidity returning to risk assets. Traders are closely monitoring BTC to see if it can sustain its strength and solidify $100K as a strong support level.

Analyst Big Cheds provided a technical analysis that emphasizes the positive structure visible on the 4-hour chart, pointing out that BTC is in a phase of bullish consolidation. This pattern typically indicates a continuation, as prices tighten just below resistance before attempting to break out. With no signs of depletion thus far, this setup suggests that Bitcoin could have further potential for gains, especially if bullish momentum is maintained through the weekend.

Bitcoin Approaches Key Resistance Amidst Positive Trends

Bitcoin has experienced significant growth in recent days, overcoming several resistance thresholds and confidently reclaiming the $100K mark. Currently around $104,000, BTC is confronting a pivotal resistance area that could dictate whether the rally advances towards new all-time highs or pauses for a period of consolidation. This zone corresponds to the upper limit of a previously identified supply area and is a focal point for both bullish and bearish sentiments.

Despite the strong bullish price movement, macroeconomic variables continue to pose risks. Ongoing global uncertainties, inflation worries, and stringent monetary policies from central banks might exert downward pressure on risk assets in the near future. If sentiment shifts or external disruptions occur, Bitcoin might face a retraction, notwithstanding the robust framework it has established recently.

Cheds provided insights into the current structure of Bitcoin, indicating that the 4-hour chart demonstrates a “high and tight” bullish consolidation — a classic indicator of continued growth. This formation suggests strength, as BTC holds steady at elevated levels, indicating that buyers remain dominant and are absorbing any selling pressure.

If Bitcoin can surpass the $104K level with significant volume, the next logical target will likely be a test of the previous all-time high around $109K. Nonetheless, traders should practice caution. Despite the optimistic technical framework, short-term fluctuations and broader market risks could lead to abrupt reversals.

For the moment, Bitcoin maintains a bullish outlook, and as long as it stays above the $100K level, the case for upward continuation remains strong. The forthcoming sessions will be critical in determining whether BTC possesses the strength to break out or requires further time to consolidate.

Price Analysis: Developing a Bullish Framework

Currently, Bitcoin is trading just above $103,000, consolidating after reaching the $104,300 mark earlier in the day. The recent price action confirms that bulls are firmly at the helm, having effectively reclaimed the $100K level and shattered multiple resistance barriers. However, the charts indicate that BTC is now testing a significant supply zone between $103K and $103.6K — a range that had previously served as resistance earlier in the year.

Volume has surged in recent days, indicating strong demand supporting this breakout. Nevertheless, the latest candle features a long upper wick, suggesting some short-term selling pressure as BTC contends with overhead resistance. Should bulls succeed in pushing past $103.6K with sustained volume, a breakout toward the $109K all-time high could ensue.

On the downside, the $100K level now serves as immediate support. Falling below this, the zones around $95K and $90K — which were prior areas of consolidation — may offer further structural support. The daily 200-day simple moving average (SMA) at $91,227 and the 200-day exponential moving average (EMA) at $87,004 remain significantly below the current price, reinforcing a strong bullish trajectory.