Bitcoin Holds Above $100,000, Rally or Reverse?
Bitcoin remains steady above the $100,000 mark, awaiting the impacts of evolving market dynamics and new SEC regulations. It is currently trading within an expanding consolidation pattern, aligning with a long-term trendline connecting the highs of 2021. This formation presents two potential outcomes:
1. Continuation of the Rally:
A decisive close above $112,000 would signal further upward momentum. Key levels to watch are $128,000 and $147,000, which align with the 1.618 and 2.0 Fibonacci extensions, calculated from the September 2023 low ($25,000), March 2024 high ($73,800), and August 2024 low ($49,500).
2. Reversal Risk:
Failure to break above $112,000 could form a double-top pattern, potentially leading to a reversal. A break below $84,000 could indicate further downside, with possible moves toward $70,000, $62,000, and $50,000.
Elliott Wave Perspective:
From an Elliott wave standpoint, Bitcoin has completed five clear waves, but an extension of the fifth wave remains a possibility if the $112,000 level is breached. If not, the Fibonacci retracement tool between the 2022 low and 2025 high can provide insights into potential corrective moves.
- Razan Hilal, CMT
1. Continuation of the Rally:
A decisive close above $112,000 would signal further upward momentum. Key levels to watch are $128,000 and $147,000, which align with the 1.618 and 2.0 Fibonacci extensions, calculated from the September 2023 low ($25,000), March 2024 high ($73,800), and August 2024 low ($49,500).
2. Reversal Risk:
Failure to break above $112,000 could form a double-top pattern, potentially leading to a reversal. A break below $84,000 could indicate further downside, with possible moves toward $70,000, $62,000, and $50,000.
Elliott Wave Perspective:
From an Elliott wave standpoint, Bitcoin has completed five clear waves, but an extension of the fifth wave remains a possibility if the $112,000 level is breached. If not, the Fibonacci retracement tool between the 2022 low and 2025 high can provide insights into potential corrective moves.
- Razan Hilal, CMT
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.