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Start for freeBitcoin Retesting Support After Recent Breakout
Bitcoin is currently retesting support levels after breaking out on larger timeframes recently. Let's analyze the key levels and indicators to watch:
3-Day and 4-Day Timeframe Analysis
On the 3-day Bitcoin chart, the Super Trend indicator has flipped back to green, signaling a bullish trend on larger timeframes. However, the 4-day chart has not yet confirmed this bullish flip. For the 4-day Super Trend to turn green, we need to see a candle close above approximately $71,600.
2-Day Chart Breakout and Retest
Looking at the 2-day chart, Bitcoin broke out above a descending resistance line around $66,000 over the past week. The current price action shows a retest of this breakout level. As long as Bitcoin holds above $65,000-$66,000, the larger bullish structure remains intact. A confirmed break below this range could lead to a pullback towards the low $60,000s.
Daily Chart Support and Resistance Levels
On the daily timeframe, Bitcoin is testing support between $66,700 and $68,300. A daily close below this zone could trigger a move down to support at $66,000 or potentially $64,100-$64,500. However, as long as Bitcoin maintains above $60,000, the higher low and higher high structure remains in place.
Cup and Handle Pattern
The daily chart also shows a cup and handle pattern. The current price action is retesting the breakout level of this pattern. A daily close below $66,000 would invalidate the pattern and its bullish implications.
Short-Term Bearish Divergence
On shorter timeframes like the 3-hour chart, a bearish divergence has formed with higher price highs but lower RSI highs. This suggests we may see some short-term downside in the immediate future.
Key Levels to Watch
- Support: $65,000-$66,000 (critical)
- Secondary support: $64,100-$64,500
- Resistance: $69,000-$70,000
Ethereum Rejecting Key Resistance
Ethereum has encountered strong resistance at a critical level. Let's break down the important price points:
3-Day Timeframe Resistance
On the 3-day chart, Ethereum has rejected precisely at the $2,800 level, which was previously an important Fibonacci support turned resistance. Breaking above $2,800 is crucial for ETH to turn more bullish on larger timeframes.
Support Levels to Watch
- $2,500: Key support level
- $2,150-$2,200: Significant support zone
12-Hour Chart Analysis
The 12-hour timeframe shows rejection from the $2,700-$2,800 resistance zone. This area has proven to be a strong selling zone for ETH.
Key support levels on this timeframe include:
- $2,550-$2,580
- $2,440-$2,475
- $2,630 (minor support based on previous price action)
Solana Price Action and Pattern
Solana has shown some bullish price action recently. Here's what to look out for:
Daily Timeframe Breakout
SOL has broken out above the $159-$163 resistance zone with a daily candle close, turning this area into new support. So far, the price is holding above this level, which is a positive sign.
Resistance Levels Ahead
- $170-$175: First resistance zone
- $183-$187: Significant resistance area
Inverse Head and Shoulders Pattern
An inverse head and shoulders pattern has formed on the daily chart with a breakout confirmed. The pattern suggests a potential price target just above $200 (around $202). However, it's important to remember that price doesn't move in a straight line, and the mentioned resistance levels may cause temporary pullbacks.
Key Level to Hold
For the bullish momentum to continue, Solana needs to hold above the $157-$163 range, which was the breakout point of the inverse head and shoulders pattern.
Trading Strategies and Risk Management
When trading these market conditions, consider the following approaches:
- Look for bounces off key support levels for potential long entries.
- Use stop losses below critical support zones to manage risk.
- Take partial profits at resistance levels.
- Be cautious of short-term bearish divergences that may lead to pullbacks.
- Monitor Bitcoin's price action closely, as it often leads the overall crypto market.
Conclusion
The crypto market is at a critical juncture, with Bitcoin retesting key support levels after a breakout and Ethereum facing strong resistance. Traders should closely monitor the identified support and resistance zones for each asset.
For Bitcoin, holding above $65,000-$66,000 is crucial for maintaining the bullish structure. Ethereum needs to overcome the $2,800 resistance to turn more bullish, while Solana shows promise with its recent breakout but faces resistance ahead.
Remember to always practice proper risk management and consider the interconnected nature of the crypto market when making trading decisions. Stay informed, watch for key technical levels, and adjust your strategy as market conditions evolve.
Article created from: https://youtu.be/Xc9NE8Wp6pY?si=tWWaHhvFzff_C8Y0
