Bitcoin: Institutional Level Technical Analysis
Bitcoin surged early last week, tagging the major $107,000-$108,000 target price. Just like clockwork, it collapsed down to $92,000 (support). If you have been following here, you fully expected this price action. Since the break of $74,000 (the March 2024 prior all-time high), we have said it would head to $107,000-$108,000. This has been achieved, now the risks start to mount for a major pull back.
In terms of resistance, the $108,000 high is the level to beat. Should the price of Bitcoin move above that level, the next stop would be $120,000. However, this not just any resistance point at $108,000. It is a major trend line stretching back to the 2017 bull market high and connecting through the two major bull market highs in 2021. This means there could be a major correction off this level.
Should Bitcoin stay weak, watch the $91,000-$92,000 level. If that breaks, the downside would be $74,000-$75,000. This would stand out as a major potential buying opportunity for swing traders.
Bitcoin remains a risk asset. This fall on Bitcoin in the last week coincided with the NASDAQ falling sharply as well. This means Bitcoin remains vulnerable to further downside in the stock market.
While we do believe that Bitcoin will eventually be viewed as a safe haven asset like gold, it has not matured into that yet.
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