Bitcoin (BTC) just managed to hit $109,000 before falling back down into its latest corrective phase. With a lower high now in place, can Bitcoin bulls avoid making a lower low?
Conflict rages on but stock market doggedly climbs higher
The current financial and geopolitical situation for Bitcoin is just as nervy and gut-wrenching as it has been over these last several days. The Israel/Iran conflict has entered its fifth day without seemingly any end in sight.
That said, the U.S. stock market has doggedly continued to climb, and with the S&P 500 currently holding above 6,000 points, the all-time high of 6,147 isn’t more than a stone’s throw away. It would appear that increasing global liquidity holds more sway for Wall Street than a Middle Eastern conflict.
Strong buying for Bitcoin
Bitcoin has also generally managed to avoid the geopolitical downdrag and was able to rise as high as the important $109,000 resistance on Monday. It would have helped that the U.S. Spot Bitcoin ETFs have continued into a sixth straight trading day of inflows amounting to a combined 16.8K BTC. In the same vein, Strategy announced that it had acquired 10,100 BTC for $1.5 billion.
Sideways price action continues
Source: TradingView
The 4-hour chart for $BTC shows that the price action is still generally sideways. The $109,000 resistance is becoming a major level, and therefore on the next upward impulse, if the bulls can pierce this and confirm above, this can leave the path open to revisit the all-time high.
However, there is a lot for the bulls to do right now in order to avoid a dip below the important horizontal supports of $105,750 and $104,400. $102,000 is probably the last of the major supports before a potential tumble under $100,000.
Increased volatility at higher levels
Source: TradingView
The weekly time frame reveals how the candle wicks are getting longer due to the volatility and the rarefied air at these higher levels. The dragonfly doji candle of two weeks ago had the potential to provide momentum for the bulls, but last week’s candle went some way towards annulling this by leaving a long candle wick to the upside.
It’s still early days for this week’s candle, but as it stands the bulls will need to push the price back above $106,000, and at the very least, avoid a fall below $104,400.
At the bottom of the chart, the Stochastic RSI still has the blue fast line posturing to climb back above the orange slow line. If this can take place, it would be extremely bullish going forward.
Possible concerns for Bitcoin on 2-week time frame
Source: TradingView
The 2-week chart backs up the positivity of the weekly chart. The breakout of the bull flag still hasn’t reached its $115,000 target. As long as this next 2-week close is positive, further upside price action could be expected.
Nevertheless, there is the danger that a double top might play out here. If the price continues to roll over and falls down under the support, this could encourage the Stochastic RSI indicators on this time frame to also roll over and cross back down. If this particular scenario were to play out, there could be a substantial dip to come. Bulls will be keeping their fingers firmly crossed that this does not come to pass.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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