FX.co ★ #Bitcoin chart analysis

BITCOIN Timeframe Daily: Bitcoin's daily chart displays an interesting market structure, demonstrating the transition from a downtrend to a potential recovery. Examining the price relative to the 100- and 200-day moving averages (MAs), the 200-day moving average (MA) remains above the price and is trending downward. This indicates that the long-term macro trend remains under bearish pressure. Meanwhile, the 100-day moving average (MA) (usually blue) is closer to the price and is beginning to slope downward, with the potential for a reversal. This is often an early indication that selling pressure is easing and the market is entering an accumulation phase, or the beginning of a trend reversal. The previous price movement showed a sharp decline from the upper area, forming a low around the 64,000-65,000 area. This area then became strong support, proven on several occasions to withstand further declines. From there, the price began forming a pattern of higher lows and gradually rising, a classic signal of increasing buyer power. This structure was reinforced by a fairly long period of consolidation before the price finally moved upward. Looking at the horizontal support and resistance lines, several key levels are worth noting. The area around 73,000–74,000 serves as minor support, having previously acted as resistance. A break and retest of this area validates that buyers are beginning to control short-term movements. Furthermore, the 79,000–81,000 zone is a key resistance area currently being tested. This level is crucial because it is close to the 100-day moving average (MA), making it a frequent price reaction area. If the price can break through and hold above this area, the opportunity for continued upside towards the next resistance level around 84,000–85,000 will increase.

However, it's important to note that the 200-day moving average (MA) is still quite far above the price, around 90,000, and is still showing a downward slope. As long as the price cannot break through and hold above the 200-day moving average (MA), the major trend is structurally still not fully bullish. In many cases, the 200-day moving average often acts as strong dynamic resistance, so the possibility of rejection in this area still needs to be anticipated. In terms of price dynamics, the current movement tends to form a short-term ascending channel. A gradual and less impulsive rise indicates that the market is still in an accumulation phase, rather than euphoria. This is generally a healthier condition because it provides a strong foundation for a more sustainable uptrend. However, as long as the price remains below the 200-day moving average (MA), any rise still carries the risk of acting as a relief rally within a larger downtrend. If the price fails to break through the resistance around 81,000 and falls again, the 74,000 area will once again become a key support area. A break below this level could potentially send the price back to the previous consolidation area around 70,000–71,000, and even possibly retest the strong support around 64,000. Overall, Bitcoin's technical condition is currently at a crucial juncture between continuing the recovery or returning to bearish pressure. Price interaction with the 100-day moving average (MA) will determine short-term direction, while the 200-day moving average (MA) remains the long-term trend indicator. As long as the price maintains a structure of higher lows and gradually approaches the 200-day moving average (MA), the possibility of a trend reversal remains open, although full confirmation will only occur with a strong breakout above the 200-day moving average accompanied by significant volume.