Market Overview
Bitcoin (BTC) is currently trading at $112,361, showing a 0.72% increase in the past 24 hours and a significant 4.40% rise over the last seven days. This upward movement has brought BTC close to a critical resistance level at $113,400. Traders are closely monitoring this zone for a potential breakout that could propel the price towards the next target of $115,800.
Current price action indicates that BTC is consolidating just below this resistance level, with buyers showing increased activity in recent sessions. Market analysts suggest that a confirmed breach above $113,400 could pave the way for a more substantial upward trend towards higher price objectives. However, until such a breakout occurs, this area is expected to act as a strong barrier.
Technical Analysis: 4-Hour Chart Indicators
4H 200MA/EMA Acts as Ongoing Resistance
On the 4-hour chart, Bitcoin is once again facing resistance from the 200-period Moving Average (MA) and Exponential Moving Average (EMA). These two key trend lines have previously rejected price advances on two separate occasions, and the latest attempt was no exception. BTC briefly entered this zone but failed to sustain its position above it, subsequently pulling back.
Daan Crypto Trades observed this recent price action, noting, "Another failed push higher which stranded at the 4H 200MA/EMA."
This persistent rejection at the 4H 200MA/EMA suggests that Bitcoin is encountering difficulties in regaining strength in the short to mid-term trend. The 4-hour trend remains a significant resistance point until a clear breakout is achieved. Without this breakout, the price may continue to trade within a range or potentially retrace to lower support levels.
Key Support and Resistance Levels
$107K Support Remains a Key Level
Bitcoin has recently returned to the $107,000 support zone, which also coincides with the Daily 200MA/EMA area. This level has historically provided support on multiple occasions and is considered critical for bulls to defend. A sustained decline below this range could expose BTC to a more significant correction.
Daan Crypto Trades further commented on the importance of this level, stating, "If this wants to flip this low to mid timeframe downtrend around, it's key to retake that 4H trend."
Traders are closely watching the $107,000 level as a potential pivot point that could determine whether the market sees a recovery or a further decline.
Market Sentiment and Future Outlook
Traders Focused on $113.4K Breakout for Direction
The current market structure presents mixed signals. While the price is showing an upward trend, momentum has been limited by key moving averages. A confirmed break above the $113,400 resistance level would signal a shift in market dynamics and could initiate a move towards $115,800. Conversely, a failure to break through this resistance may lead to renewed selling pressure.
Analyst LennaertSnyder shared their perspective, saying, "Watching this for shorts after failure or long after the gain."
The upcoming trading sessions will be crucial in determining whether Bitcoin can sustain its upward momentum or faces another rejection at the current resistance levels.