Bitcoin Eyes Breakout as Bulls Hold Key Support Levels
Following a period of relative stability during the Christmas and New Year’s weeks, the bitcoin price experienced a slight uptick over the weekend. Bitcoin price wrapped up the week at $91,489, slightly surpassing the short-term resistance level of $91,400. If bulls can maintain their position above this level, they are likely to make another attempt at the $94,000 resistance level this week, which has capped the price since mid-November. $98,000 is within reach this week as well. Bulls are poised to build on their momentum as they approach the New Year, aiming to breach the $94,000 resistance level. Above $94,000, we encounter $98,000, where resistance significantly intensifies, extending all the way up to $103,500. This zone is set to push back against the price if it manages to rise above $94,000. The $109,000 mark presents a probable ultimate barrier that will be incredibly challenging to overcome. If the price surpasses $109,000, we can begin discussing the possibility of reaching new highs.
The bulls are aiming to maintain support at $87,000, should the bears succeed in pushing the price down to that level. $84,000 remains a robust support level; however, its strength may diminish with additional tests. If $84,000 support fails, attention will shift to the $72,000 to $68,000 support zone, which is anticipated to serve as a robust level for a potential bounce. Sleepy bears have shown some signs of activity over the past few weeks. This week, the bulls are expected to seize the opportunity by pushing the price higher towards the next resistance level. Keep an eye out for another attempt at $94,000 from the bulls.
$98,000 is likely to act as a resistance level this week, provided that bulls can successfully break through $94,000. If bulls are unable to maintain the $91,400 level this week, expect them to focus on defending the $87,000 level, aiming for another shot at breaking above it and challenging the $94,000 mark once more. Market mood: Neutral – Bulls have successfully maintained support levels in recent weeks and are experiencing a slight upward momentum this week. The bearish sentiment has eased, shifting towards a more neutral stance.
The weekly chart remains caught between the upper trend line of the broadening wedge above and the weekly 100 SMA below, a situation that has persisted for several weeks. One of them had to break, and for now, it is the trend line resistance that has eroded away, giving the bulls a chance to push higher. The long-term outlook remains bearish, so keep an eye out for any bullish movements that may peak in the upcoming weeks before retreating to test support levels between $87,000 and $84,000. Should the price close any week below $84,000 now, it will position bears to push the price down toward the next support level in the low $70,000 range. For the bulls, maintaining weekly closes above $100,000 is crucial to attempt a reversal of the long-term trend.
