Bitcoin pleased investors with its Christmas Eve rally, climbing from $92,300 to a daily high of $99,400. The rapid rally reignited the bullish sentiment as the price successfully held the critical demand level, showing BTC's strength and position to challenge the psychological milestone of $100,000. Market participants are now closely following Bitcoin's next move and predict that the next move will continue in the coming days.
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Top analyst Carl Ronfelt shared a compelling technical analysis on X, highlighting the formation of a symmetrical Bitcoin triangle on the hourly time frame. This pattern often indicates a period of consolidation before a significant breakout, and Runefelt believes that BTC is on the verge of such a move. A confirmed breakout above this triangle could lead Bitcoin to price discovery, unlock further gains and mark a pivotal moment in its current market cycle.
With strong demand levels aligning support and technical patterns for a possible failure, Bitcoin's path to $100,000 looks clearer than ever. However, traders are cautious as volatility could still play a role in the short term. All eyes are on the leading digital currency as it enters a critical phase, with investors eagerly awaiting confirmation of a new phase in its historic uptrend.
It seems that Bitcoin is ready to grow again
Bitcoin seems poised for another price rally, maintaining a bullish structure after sustaining critical demand levels. This resilience underscores the market's confidence in Bitcoin's ability to recapture $100,000 and increase its price, with both analysts and investors closely monitoring its price action for confirmation.
Carl Ronfelt, the top analyst recently Share insightful technical analysis on Xhighlighting a symmetrical triangle pattern on Bitcoin's hourly chart. Symmetrical triangles often indicate a period of consolidation before a breakout, and Runefelt suggests that BTC is poised to break higher.
He also identified $100,700 as a key level. A break above that would indicate a strong bullish move and potentially push Bitcoin to new highs. Conversely, he cautioned that a drop to $95,200 is a sign of weakness, indicating a short-term bearish turn.
Runefelt's analysis is in line with market sentiment, as many traders see Bitcoin's current consolidation as a precursor to a significant upside move. If BTC confirms a break above the triangle, it could trigger an increase in buying activity and push the price into uncharted territory. However, failure to sustain momentum above critical levels may lead to increased volatility and challenge Bitcoin's bullish outlook.
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Currently, the digital currency is a steady leader and all eyes are on the $100,700 mark. If Bitcoin successfully breaks this resistance, it could ignite the next phase of its uptrend and confirm its position as the dominant force in the crypto market.
Price Action: Key levels to watch
Bitcoin is currently trading at $98,400, representing a significant 7% gain from its recent local low of $92,000. This recovery indicates renewed bullish momentum, with price retrieving the critical 4-hour 200 EMA, a key indicator of short-term strength. Bitcoin now faces a significant hurdle as it tries to break above the 4-hour 200 MA at $98,470.
A retracement of the 200 MA confirms Bitcoin's bullish trajectory and potentially triggers aggressive buying activity to push the price above the psychological $100,000 mark. Breaking this level would not only boost market confidence, but could also create further upside momentum and push Bitcoin to new highs.
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On the other hand, a failure to retrace the 200 MA could result in Bitcoin rallying below $100,000. This is likely to lead to a period of sideways price action, with traders waiting for new catalysts to determine the next move.
Featured image from Dall-E, chart from TradingView
