What conditions must be met for a major breakout of Bitcoin?
Currently, the Bitcoin price is hovering around $88,600, at 3:40 AM Beijing time. The market has reached the entry point of $89,000, which is within the ideal accumulation range. It is recommended to rely on key support for risk control and wait for the trend to break upward. The main funds have been consolidating in this area for several days, and the price rebounding from the support level after falling from the high of $94,000 is enough to validate the effectiveness of this support range. In the short term, the price is unlikely to deviate from this range for an extended period. Of course, if the main funds further probe down and break through the key support level, one must decisively exit to avoid risk, always prioritizing capital safety.
From the daily candlestick chart, before publication, the price peaked at $90,440 and dipped to a low of $88,410. The EMA trend indicator shows an overall consolidation, with the price oscillating within the major box range of $85,000—$94,500 for a long time. Currently, the price is at the mid-point of the box, accompanied by continuous horizontal consolidation. The MACD indicator's volume continues to shrink, and the DIF and DEA lines are beginning to converge, with the candlesticks running horizontally close to the middle track of the Bollinger Bands. Overall, the market is still in a consolidation pattern, and it is difficult to distinguish between bulls and bears in the short term, with no signs of significant fluctuations, making it suitable for swing traders to enter and exit quickly to seize arbitrage opportunities within the range.
Looking at the four-hour candlestick chart, the consolidation characteristics are even more pronounced. The EMA trend indicator consistently extends evenly around the candlesticks, with prices repeatedly moving up and down based on the EMA indicator. The current price has fallen back to the lower support area, with the MACD indicator continuously decreasing in volume, and the candlestick touching the lower Bollinger Band at $88,400, while the middle Bollinger Band at $90,500 is a key pressure point to watch. The short-term trend is relatively weak, clearly indicating a range-bound market. Investors can use key support and resistance levels to buy low and sell high, strategically positioning themselves to capture swing profits.
