After setting a new all-time high, Bitcoin is poised for a breakout rally with a target of $110K this December.
The buying pressure in Bitcoin has significantly surged overnight, pushing the price to an all-time high of $106,533. Amid this strong rally, BTC registered a notable recovery, with a 3% surge on Sunday.
As the residual momentum hints at a potential breakout from its current channel, Bitcoin finds itself at a crossroads. Will the price push beyond $110,000, or will resistance cause a pullback?
Bitcoin Price Analysis
With a streak of bullish candles in the 4-hour chart, the BTC price tests the rising channel’s resistance. The boost in trend momentum comes after the breakout of an inverted head-and-shoulder pattern.
This breakout resulted in a massive bullish engulfing candle, driving the 24-hour high above $106,000. However, despite the surge in demand, the overhead supply led to a swift bearish reversal, delaying a full bullish breakout.
Currently, Bitcoin is trading at $104,842 after failing to close above the resistance trendline. Along with the trendline, the 38.20% Fibonacci level at $105,587 remains a critical resistance point.
Additionally, a modest 0.27% recovery over the past four hours brings Bitcoin closer to this crucial resistance. The exponential moving averages (EMAs) remain positively aligned, supporting the likelihood of a breakout rally.
Furthermore, the MACD and signal lines maintain a bullish trend, with new positive histograms indicating a continuation of upward momentum. As a result, technical indicators suggest a bullish bias for Bitcoin.
BTC Price Targets
If Bitcoin closes strongly above the 38.20% Fibonacci level on the 4-hour chart, the price will likely surge, potentially setting a new all-time high. Additionally, with the release of trapped momentum from the rising channel, the immediate target for Bitcoin is the 50% Fibonacci level at $110,375.
However, if the bulls fail to break through the crucial Fibonacci resistance, a downside risk of 2.5% could materialize. In that case, the key support trendline, combined with the 20-EMA at $102,264, could offer the next potential reversal point.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
