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Start for freeBitcoin's Bullish Momentum Continues
The cryptocurrency market is buzzing with excitement as Bitcoin (BTC) displays another significant bullish signal on its price chart. The leading digital asset is inching closer to major upside liquidity, which could potentially trigger a short squeeze in the near term. This development comes at a time when the Bitcoin Relative Strength Index (RSI) on smaller timeframes is entering overbought territory, while Ethereum (ETH) continues to play out a bullish divergence pattern and approaches a potential breakout.
Weekly Bitcoin Chart Analysis
On the weekly Bitcoin chart, we're witnessing a major breakout in the RSI. This is a rare and noteworthy signal, as weekly timeframes typically take considerable time to play out. The current breakout is viewed as a substantial bullish indicator, potentially signaling a major bull market that could unfold over the coming months or even up to a year.
Four-Day and Three-Day Bitcoin Charts
Examining the four-day Bitcoin chart, the Super Trend indicator remains in the red. However, a flip to green could occur if we see a breakout above approximately $71,500. On the three-day timeframe, this bullish flip would happen at around $68,000.
Key Resistance Level: $68,000
The critical level to watch is around $68,000. Breaking above this price point would signify:
- A breakout above the massive descending line of resistance
- Surpassing the previous high of approximately $69,000
Confirming a breakout above $68,000 could potentially transform the current short-term bullish trend into a longer-term bull run lasting several months.
US Dollar Index (DXY) and Bitcoin Correlation
The US Dollar Index (DXY) has experienced another downward movement in the short term, continuing its bearish trend. This development is typically bullish for Bitcoin prices, as the two assets often display an inverse correlation. The recent lower low in the DXY coinciding with a higher high in Bitcoin prices further reinforces this relationship.
Daily Bitcoin Chart Analysis
On the daily Bitcoin chart, we've seen confirmation of a breakout above the previous resistance area, now acting as new support between $64,100 and $64,500. The next resistance zone to watch is between $67,000 and $68,000.
If Bitcoin can break above $68,000 with confirmation, it would be an extremely bullish signal, potentially leading to:
- A test of the all-time high around $73,000 to $74,000
- Possible new all-time highs within days or weeks after clearing $68,000
Support Levels to Watch
In case of a rejection at the $67,000-$68,000 resistance:
- Primary support: $64,100 to $64,500
- Secondary support: $63,000
- Major support zone: $60,000 to $61,000
Short-Term Bitcoin RSI Analysis
Zooming into the 6-hour chart, the Bitcoin RSI is once again entering overbought territory. This situation has occurred several times in recent weeks, often resulting in reduced bullish price action for 1-2 days, but not necessarily ending the overall bullish trend. Traders should be prepared for potential sideways consolidation or a slight pullback as the price approaches the $67,000-$68,000 resistance zone.
Ethereum Price Analysis
Three-Day Ethereum Chart
Ethereum continues to bounce from a major support area between $2,150 and $2,200. Additional support exists at $2,450 to $2,500. The critical resistance level to watch is $2,800, which coincides with a previous Fibonacci support level. A confirmed breakout above $2,800 on the three-day timeframe would be extremely bullish for Ethereum's price structure.
Daily Ethereum Chart
On the daily timeframe, Ethereum is still playing out an active bullish divergence pattern. This divergence has been in play since the price was below $2,300, suggesting the likelihood of a bullish relief or choppy sideways price action.
Key Fibonacci levels to watch:
- 38.2% retracement: ~$2,670
- 50% retracement: Just above $2,800
At the time of analysis, Ethereum was potentially breaking out above the $2,670 resistance. A daily candle close confirming this breakout could lead to continued bullish momentum towards the next major resistance at $2,800.
Short-Term Ethereum Analysis
On the 3-hour timeframe, a previous bearish divergence has been invalidated, with the price making new higher highs and the RSI breaking above its descending resistance line. This development supports the continuation of the bullish trend stemming from the larger bullish divergence on the daily timeframe.
Solana (SOL) Price Analysis
Solana is currently approaching a significant resistance area between $159 and $163, where previous rejections have occurred. This is a critical zone to monitor for potential struggle or breakout.
Key levels for Solana:
- Current resistance: $159 to $163
- Next resistance (if breakout occurs): $170 to $175
- Major resistance: $183 to $187
If Solana experiences a rejection at the current resistance, there's a possibility of an inverse head and shoulders pattern forming on the daily timeframe. This could potentially lead to a larger bullish pattern, even if there's a short-term setback.
On the 8-hour timeframe, Solana is potentially forming a bearish divergence, but it's important to note that this is not yet confirmed. Traders should watch for confirmation signals, such as red candle closes on the 8-hour chart, before considering any bearish implications.
Trading Opportunities and Risk Management
For traders looking to capitalize on these market movements, it's crucial to use reputable exchanges and implement proper risk management strategies. Always be aware that cryptocurrency markets can be highly volatile, and past performance does not guarantee future results.
Remember that trends don't move in straight lines, and occasional pullbacks or consolidations are normal even within a larger bullish trend. Always conduct your own research and consider your risk tolerance before making any trading decisions.
Conclusion
The cryptocurrency market is showing strong bullish signals, particularly for Bitcoin and Ethereum. Bitcoin's potential short squeeze and Ethereum's approach to a significant breakout level are key events to watch. However, traders should remain cautious of overbought conditions on smaller timeframes and be prepared for potential short-term consolidations or pullbacks.
As always, the crypto market remains dynamic and unpredictable. Stay informed, manage your risks carefully, and never invest more than you can afford to lose. Keep an eye on key support and resistance levels, and be prepared to adjust your strategy as market conditions evolve.
Article created from: https://youtu.be/7Y4rQlR-EPo?si=q6iks92PKlLtcDVb
