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Start for freeBitcoin Breaks Out to the Upside
Bitcoin is officially breaking out to the upside, setting up the next major price target. This breakout in the daily Bitcoin RSI is causing a major short squeeze, liquidating many short positions.
Bitcoin Weekly Chart Analysis
On the weekly Bitcoin chart, Bitcoin is technically still in a bull market. We're starting the second half of January, which means we should be expecting the next major move in the bull market soon.
Over the last month, Bitcoin has seen choppy sideways price action as expected. This was based on similar price structure and MACD indicator signals to what we saw exactly one year ago:
- October 2023 and 2024: Bullish crossover in MACD followed by massive bullish move
- Early-mid December 2023 and 2024: Slowing down, losing bullish momentum
- Choppy sideways action until late January
Now that we're entering the second half of January, we can expect the next significant move very soon.
4-Day Bitcoin Chart
On the 4-day Bitcoin chart, the Super Trend indicator is still green, indicating a larger bull market. However, there is still a bearish divergence on the weekly timeframe, with higher highs in price but lower highs in RSI.
A confirmed breakout above $105,000 with a weekly candle close would set a new higher high, requiring reconfirmation of the bearish divergence. The bullish scenario would be a breakout in both price and weekly RSI above the previous high.
Daily Bitcoin Chart
On the daily timeframe, we can clearly see a breakout above the descending resistance line around $10,500. The choppy sideways action over the last 1-2 months has reset price oscillators like RSI from overbought to more neutral levels, giving more room to the upside.
We're seeing a breakout in both price and daily RSI, a very bullish signal showing strength.
Bitcoin Price Targets and Trading Strategy
Based on the triangle pattern breakout, the technical price target is around $116,000. From the breakout to the target is a potential 15% profit, or 10-11% from current levels.
Trading strategy:
- Enter a long position near the breakout or after daily candle close confirmation
- Take some profits around previous highs and near the $115-116k target
- Use a stop loss below the breakout point (~$10,500) or $100k
- Move stop loss to breakeven and into profits as trade moves up
Bitcoin Support and Resistance Levels
Resistance levels to watch:
- $106,000-$107,000
- $108,000
Support levels:
- $102,000-$103,000 (previous resistance, likely new support)
- $100,000
- $98,000
- $92,000-$93,000
Bitcoin Liquidation Analysis
The breakout above $103,000 triggered a small short squeeze, liquidating hundreds of millions in short positions. Most liquidity remains above the current price, suggesting likely continued bullish movement.
Ethereum Price Analysis
Ethereum is bouncing from support just above $3,200. On the daily chart, it's running into resistance between $3,430-$3,560. Key levels to watch:
- Resistance: $3,430-$3,560, $3,700, $3,900-$4,100
- Support: $3,200
Ethereum will likely follow Bitcoin's overall direction.
Chainlink Price Analysis and Trading Strategy
Chainlink has broken out of a bullish falling wedge pattern, confirming a breakout above $22. The price target from this pattern is around $29.30.
Key levels:
- Resistance: $24.50-$25.50, $26.20
- Target: $29.30
Trading strategy:
- Enter a long position on breakout confirmation
- Take partial profits at resistance around $24.50-$25.50
- Take more profits near the $29.30 target
Solana Price Analysis
Solana is continuing its bullish divergence breakout. Key levels:
- Support: $200-$205
- Resistance: $220-$223, $232, $246
The 8-hour RSI is entering overbought territory, suggesting a potential short-term cooloff soon.
XRP Price Analysis
XRP is facing resistance around $3.30. Key levels:
- Support: $2.90-$3.00
- Resistance: $3.30
- Next upside target: $4.68
Cardano Price Analysis and Potential Breakout
Cardano is facing major resistance in the $0.13-$0.123 range on the weekly timeframe. On the daily chart, it's breaking out of a symmetrical triangle pattern with a target around $0.95.
Key levels:
- Resistance: $0.13-$0.123 (weekly), $0.176
- Breakout target: $0.95
Potential trading strategy:
- Wait for confirmed breakout above $0.123 (weekly close)
- Enter long position on breakout confirmation
- Target $0.176 and $0.95
Conclusion
Bitcoin's breakout is leading the crypto market higher, with many altcoins following suit. Traders should watch key resistance levels and manage risk appropriately as the bull market continues to unfold. Always use proper risk management and consider the larger market context when trading these volatile assets.
Article created from: https://www.youtube.com/watch?v=0zv8cwlci0o
