Bitcoin (BTC) continues to surprise! With an impressive momentum, the leading digital asset has broken through the important psychological barrier of $115,000, currently trading at $115,006.99 with a valuation of +1.31% in the last 24 hours. This movement, coming after a correction that brought the price down to the region of $102,000 at the beginning of October, is a testimony to the market's resilience. But what does this breakout mean and where can we go in the coming days? Cryptograma shows you!
Overview: Consolidated Bullish Momentum
Price action on the 4-hour chart shows consistent bullish candles, suggesting that the level of US$ 115,000 may be turning into a new support. The market is responding positively to buying pressure, indicating confidence.
Undeniable Strength Signals (Optimistic):
Breakout and Consolidation: Overcoming the resistance of US$ 115,000 is a powerful technical signal. The challenge now is to consolidate above this level.
Moving Averages (MAs/EMAs):
The price is comfortably above all short and long-term Moving Averages (MA(7) at 114,674.34, EMA(7) at 114,551.22, MA(25) at 112,085.80, EMA(25) at 112,499.13, MA(99) at 110,671.17 and EMA(99) at 111,920.47).
We have observed a golden cross already established on the shorter timeframes, with 7 and 25 period MAs staying above the 99 MA, a strong indicator of confirmed bullish trend.
Robust Volume: Recent trading volume has been healthy during the upward movement. With 21,687.75 BTC (US$ 2.49 billion) in the last 24h, there is conviction from buyers, sustaining the rally.
RSI (Relative Strength Index): The relative strength indicators (RSI(6) at 73.52, RSI(12) at 72.05) are in overbought territory. While this requires attention, in markets with strong bullish trends, the price can remain overbought for extended periods. The RSI(24) at 62.95 still shows room for growth in the long term.
Points of Attention (Resistances and Possible Pullbacks):
Immediate Resistance (Order Book): The order book shows a significant sell wall at US$ 120,000, with over 169 BTC (approximately US$ 20.39 million) in sell orders. This will be the first and most important obstacle to overcome.
Previous Resistances on the Chart: The historical and psychological peaks around US$ 120,000, US$ 123,000 and US$ 125,000 (and US$ 130,000) will act as strong zones of technical resistance.
Overbought RSI: The entry of short-term RSIs into overbought territory suggests that, although there is strength, the current growth rate may be unsustainable without a pause. A pullback or consolidation may be necessary to 'cool down' the market before a new attack on resistances.
Scenarios for the Coming Days:
Optimistic Scenario: If Bitcoin can absorb the selling pressure at US$ 120,000 with sustained volume, we could see a continuation of the rally towards US$ 123,000 - US$ 125,000 and possibly US$ 130,000.
Consolidation/Minor Correction Scenario (Most Likely): Given the overbought RSI and strong resistance at US$ 120,000, it is more likely that Bitcoin will enter a consolidation period between US$ 115,000 and US$ 120,000. A healthy pullback to retest the EMAs/MAs of 7 or 25 periods (in the range of US$ 112,000 - US$ 114,500) is a possibility for reaccumulation.
Key Supports: In the event of a pullback, the levels of US$ 114,500 (EMA(7)), US$ 112,000 (EMA(25)) and US$ 110,000 (EMA(99) and psychological level) will act as dynamic and important supports.
Conclusion: Bullish Bias, But with Eyes Open
Bitcoin demonstrates undeniable strength by breaking through US$ 115,000, with all trend indicators pointing upwards. However, the market is approaching significant resistance levels, and short-term momentum indicators are overbought.
For the coming days, we expect a continuation of the bullish bias, but with the possibility of increased volatility or a period of consolidation before a potential breakout of US$ 120,000. Stay tuned to the volume in the upcoming breakout attempts and the levels of US$ 120,000 as resistance and US$ 112,000-US$ 114,500 as support.
At Cryptograma, the first Binance Wealth consultancy in Brazil, we are monitoring every movement to help you navigate this market. #WeAreTheFutureChangingTheNow and your success is our priority!
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