Bitcoin has recently reached new heights, but it seems to be entering a brief cooling period. While the overall trend remains positive, there are indications that a short-term pullback might occur before any further upward movement.
The daily chart shows bitcoin’s strong upward pattern with increasing highs and lows. The price surged from $107,000 to an intraday high of $125,725, backed by growing trading volume. However, the current candle’s upper shadow hints at potential profit-taking.
Indicators like the relative strength index (RSI) at 71 and stochastic oscillator at 89 suggest that the rally may be overextended and could lead to consolidation soon. Support is expected between $120,000 and $121,000 while resistance holds around $125,000 to $126,000.
The 4-hour chart reflects a transition phase for bitcoin. After hitting its daily peak, a bearish engulfing pattern emerged indicating possible correction ahead. Momentum indicators such as average directional index (ADX) at 27 and awesome oscillator at 6,472 show neutrality, signaling a pause in momentum. A noticeable drop in volume confirms this temporary slowdown. If support between $122,500 and $123,000 holds traders might consider re-entering upon bullish confirmation; a break below $122,000 on strong volume could signal deeper corrections invalidating near-term bullish setups
On closer inspection of the hourly chart bearish signals become prominent A local double top formed around $&#&49;&;;&#&53;; 725; was followed by rapid decline towards $,22,&800 zone rebound towards ,23,,500 lacked sufficient strength or volume market may retest $,22,-$1225 area absence follow-through suggests buyer hesitation bounce from support particularly accompanied increased volumes present favorable long entry alternatively clean break above ,24,on strong momentum reestablish bullish control
Momentum oscillators offer mixed insights RSI Stochastic CCI all neutral despite elevated values while momentum oscillator
.14,.514 MACD level .2,.048 indicate bullishness divergence highlights potential gains though increased volatility All key moving averages including periods EMA SMA support continued upside each flashing positive signal suggesting underlying trend strength
While Bitcoin maintains its broader uptrend caution is advised in short term Scalping opportunities exist near resistance levels around .25,, tight stop-losses above ,.25,,800 Swing traders look entries near ,.21,-$12200 if confirmed As always disciplined risk management confirmation through volumes essential navigating high-volatility environment
Bullish Perspective:
The multi-timeframe structure of Bitcoin remains robustly optimistic supported by buy signals across key moving averages along with indicators like MACD As long as prices stay above .,21,the current pullback appears healthy consolidation within broader uptrend breakout beyond .,26,could happen soon
Bearish Perspective:
Despite impressive rally recent actions show exhaustion signs including double top hour declining volumes advances If price convincingly breaks below .,22,it may trigger wider correction toward lower supports threatening recent gains