Bitcoin Technical Analysis
Bitcoin has been on a steady upward trend, breaking through the $35K resistance level. However, it now faces several resistance zones, and a bullish breakout could trigger a significant uptrend.
The Daily Chart
Looking at the daily chart, Bitcoin has been maintaining an upward trend within an ascending channel pattern and has surpassed the $35K resistance. A significant development is the 100-day moving average crossing above the 200-day moving average at $28,500, signaling a golden cross and suggesting a potential bullish market.
However, there are multiple resistance regions ahead, including the substantial $40K psychological resistance and the upper trendline of the ascending channel. A successful rally by buyers could pave the way for a positive mid-term trend, but considering the overheated futures market, a consolidation correction phase with minor retracements remains likely.
The 4-Hour Chart
On the 4-hour chart, Bitcoin has shown strong upward momentum and recently broke above the crucial $35K resistance. However, low momentum raises the possibility of a fakeout, and a bearish divergence between price and the RSI indicator suggests a potential short-term retracement. Key support levels are at $35K and the 0.5 Fibonacci retracement level at $32,300.
On-chain Analysis
The funding rates in perpetual contract markets have surged in tandem with an uptrend in Bitcoin’s price, indicating prevailing optimism in the market. However, this excessively bullish sentiment carries a potential risk of triggering liquidations and a possible long-squeeze event if there is a price contraction.
Hot Take: Is Bitcoin Poised for Another Bull Run?
While Bitcoin’s technical analysis points to potential upward momentum, it also highlights key resistance levels and risks associated with excessively bullish sentiment in the market. Traders should be cautious and closely monitor market developments to navigate potential retracements and liquidation events.
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