Hi guys,
Ascending Channel and Breakout:
The chart shows a long-term ascending channel that guided price action for several months. Recently, Bitcoin broke out of this channel, signaling a strong shift in bullish momentum. The breakout was accompanied by significant volume, confirming the strength of the move.
Fibonacci Levels and Pullback Zone:
After the breakout, the price retraced slightly and is now hovering around the 0.618 Fibonacci retracement level ($87,208) and the 0.5 level ($83,322). This area is critical, as it coincides with a Fair Value Gap (FVG)—a liquidity zone where buyers are likely to step in.
EMA 34 and EMA 89 Support:
Both EMA 34 and EMA 89 are acting as dynamic support levels, and their upward slope reinforces the bullish structure. This alignment confirms that the current pullback is part of a healthy correction in a broader uptrend.
Liquidity Grab Potential:
The highlighted liquidity zone suggests that price may temporarily dip to attract more buyers. A test of this zone could serve as a springboard for the next upward leg.
Upside Targets:
Using Fibonacci extensions, my first target aligns with the 1.0 level ($99,787), followed by 1.272 ($108,744) and 1.618 ($120,138). These levels represent logical points where profit-taking could occur in the next bullish wave.
Price Action Scenario:
Based on the chart, I anticipate a potential bounce from the liquidity zone and FVG, leading to a continuation of the bullish trend. However, a failure to hold the $83,322 level could invalidate this setup and shift focus back to lower support zones.
Conclusion:
The technicals suggest that Bitcoin remains bullish as long as the key support at $83,322 holds. I'm closely watching price action in the FVG zone for signs of buying pressure before targeting higher levels at $99,787 and beyond. Patience is key, as the market digests the breakout and prepares for its next major move.