Bitcoin is currently trading at $98,403, showing a dynamic interaction of market forces in the short-term, medium-term, and long-term charts.
Bitcoin’s 1-hour chart reflects recent price fluctuations, with bitcoin reaching a peak of $101,407 before succumbing to bearish pressure and dropping to a low of $97,931. Lower highs indicate a short-term downtrend, while spikes in volume align with sell-offs, reinforcing the bearish momentum. Traders may consider entering the market near $97,000 if bullish reversal signals, such as green candles with strong volume, emerge. Profits can be taken above the resistance level of $100,000, while a stop-loss below $97,000 is recommended to mitigate risks.
On the 4-hour chart, bitcoin’s earlier recovery to $103,647 failed to hold, and prices consolidated between $97,000 and $100,000. The smaller candle bodies indicate market indecision. The range of $96,500 to $97,000 serves as a critical support zone. Mid-term traders may consider partially exiting the market near $101,000 and reassessing their positions if this resistance is broken. A stop-loss below $95,000 protects against further declines.
Bitcoin’s daily chart highlights a broader bullish trend, with bitcoin rallying from $67,443 to $103,647 before retracing. Current prices are close to a previous support zone at $97,000, indicating potential demand. However, decreasing volume suggests weakening momentum. Long-term investors may wait for confirmation of support at $96,000 to $97,000 or a breakout above $101,000. Targets near $105,000 align with the continuation of the bullish trend, while a stop-loss below $95,000 is advisable.
Oscillators, including the relative strength index (RSI), Stochastic oscillator, and commodity channel index (CCI), are mostly neutral, reflecting a balanced market sentiment. Momentum indicators indicate selling pressure, with the momentum oscillator at 816 and the moving average convergence divergence (MACD) at 3,885, indicating potential short-term weakness.
The moving averages (MAs) maintain a bullish stance, with both exponential moving averages (EMAs) and simple moving averages (SMAs) across various timeframes favoring buying conditions. Notably, the 10-period EMA and SMA are positioned at $98,234 and $98,071, respectively, supporting near-term upward movements. Long-term averages, such as the 200-period EMA and SMA at $70,776 and $68,268, respectively, reinforce the broader bullish framework.
Bull Verdict:
If bitcoin maintains support above $97,000 and volume increases, the broader bullish trend could continue, targeting a breakout above $101,000 and extending towards $105,000. The bullish alignment of moving averages supports this outlook, indicating a favorable risk-to-reward ratio for buyers in the near term.
Bear Verdict:
If bitcoin breaks below the critical support level of $95,000, it could signal a deeper bearish reversal. Weak momentum and neutral oscillators suggest a lack of conviction, leaving room for further downside towards $92,000 or lower in the short to medium term.
