Technical Analysis Update: Bitcoin
Bitcoin's recent surge towards $100,000 has captivated the market, but the cryptocurrency has yet to decisively break through this key psychological level. After briefly touching $99,850, Bitcoin retraced to $91,000, coinciding with MicroStrategy's (MSTR) completion of its latest $3 billion Bitcoin purchase.
Despite this pullback, technical indicators suggest that Bitcoin is poised to conquer the $100,000 milestone. Historical data reveals that assets rarely approach a significant round number so closely without ultimately breaking through. This observation implies a high probability—around 90%—that Bitcoin will surpass $100,000.
Should this occur, the next major resistance level lies near $107,000. This target is derived from a trend line connecting the 2017 and 2021 highs, which also forms a parallel channel with the 2023 lows.
However, according to the technical analysis principle of "returning to the scene of the crime," a pullback to $74,000 (the March 2024 all-time high) is expected after reaching $107,000. This retracement would provide a healthy correction before further upward movement.
In summary, the technical outlook for Bitcoin suggests:
- A high probability of breaking $100,000.
- A potential surge to $107,000 upon breaking the $100,000 barrier.
- An anticipated pullback to $74,000 before further upside continuation.
Disclaimer: This analysis is based on historical trends and technical indicators. It is not financial advice, and cryptocurrency investments are inherently volatile.
