Trading Levels: Key Technical Analysis On Bitcoin

Bitcoin (BTC) shattered the $100,000 barrier this week, reaching a high of $104,000 before retracing. This price action is typical after a significant breakout, often indicating short-term exhaustion.

However, a long-term trendline originating from the 2017 peak suggests further upside potential towards $107,000-$108,000. Historically, this trendline has acted as a strong resistance, leading to sharp pullbacks. Investors should be prepared for a similar reaction this time.

On the downside, a break below the $95,000 support level within a recent parallel channel could trigger a cascade towards $91,000 and potentially even $75,000.

While the current market sentiment remains euphoric, caution is advised at these elevated prices. The limited upside potential (less than 10%) is overshadowed by the significant downside risk. Savvy investors might consider this potential pullback to $75,000 as a prime buying opportunity.