Is Bitcoin’s Price Shifting Towards a Bullish or Bearish Trend? Key Levels to Monitor According to a Crypto Expert.

In the last 24 hours, Bitcoin has gradually moved away from the $104,000 range it began the week with. This level has become especially significant as Bitcoin approaches values not seen since its recent ascent toward record highs. Over the past couple of days, Bitcoin’s fluctuations have narrowed, and the weekly candlestick chart indicates a doji formation, symbolizing uncertainty.

A recent technical analysis by crypto expert Tony “The Bull” Severino has pointed out vital levels to monitor that will indicate whether Bitcoin is shifting towards a bearish trend or maintaining bullish momentum.

Contrasting Signals: The Importance of the Current Resistance Area

Crypto analyst Tony “The Bull” Severino posted a detailed chart on social media platform X, emphasizing horizontal support and resistance as key technical indicators. According to his Bitcoin weekly analysis, the leading cryptocurrency is currently approaching a distinct resistance zone just beneath its all-time high, clearly marked in red. The proximity to this peak suggests it could serve as a barrier, making it a critical area to observe for potential breakout or reversal.

Further Insights

Tony identifies three potential interpretations regarding the market dynamics around the $108,000 resistance level. The optimistic perspective suggests Bitcoin could be consolidating beneath resistance, often hinting at a subsequent upward move. The neutral viewpoint posits that Bitcoin may be forming a broader trading range, encouraging short positions at resistance while buying near support. Conversely, the bearish interpretation highlights the doji candlestick occurrence at this significant level as a potential indicator of dwindling momentum and an early sign of a price downturn.

His trading approach reflects the prevailing uncertainty. He has established short positions within the designated red resistance area, placing a stop loss just above the all-time high. Meanwhile, he has also activated a stop buy order in the green breakout zone above the all-time high, preparing to switch to long positions should Bitcoin decisively breach resistance.

Criteria for a Bullish Breakout Remain Unmet

While Tony observed that the overall investment landscape, including altcoins and equities, appears robust, he advised that this does not ensure a bullish breakout for Bitcoin. For a breakout to be confirmed, multiple technical indicators must align. These include breaking out with considerable trading volume, an RSI reading higher than 70 on the weekly chart, and closing weekly above the upper Bollinger Band.

Further Insights

Currently, the Bitcoin CME Futures chart has fallen short of surpassing 70 on the daily RSI on two occasions, and trading volume has been diminishing. According to CoinMarketCap, Bitcoin’s trading volume stands at $44.33 billion over the last 24 hours, reflecting an 11.40% drop from the preceding 24 hours. These early indications suggest that any breakout attempt may lack the requisite strength for sustainability.

Nonetheless, the conditions remain mixed and beginning to tilt more toward bullish than bearish. At this moment, Bitcoin’s trading value is $102,352, showing a decline of 1.31% over the past 24 hours.

Featured image sourced from Pixabay; chart sourced from Tradingview.com.