Bitcoin’s recent surge above $100k has fueled more bullish sentiments among traders and investors, but on-chain metrics like CoinMarketCap suggest a possible pullback is underway as it reaches extreme greed.
Last Thursday, Bitcoin made another major move after trading calmly for weeks. That positive action alone put the asset in a more bullish state as it painted a fresh all-time high of $104,088 on Binance. It lost grip and plunged to a low of $90,500 that same day, creating a notable spike.
However, it recovered some ground and traded average at around the $100k level throughout the week. The price is currently down due to a 3% loss overnight. A continuous drop could result in more losses.
The general market outlook appears strongly bullish from a long-term perspective but things are likely to slow down a bit as the daily volume indicator is now on the fall. Looking at the daily chart, BTC volatility has been contracting for almost a month, reaching an overbought condition.
If Bitcoin advances bullishly, it may rally hard in the next few days. But from the look of things, it seems due for a correction. A drop below the $90k level could facilitate a small correction before rising back.
As it stands, the white ascending trendline is still providing support for the market. A break below it could signal an end to the latest uptrend.
BTC’s Key Levels To Watch
Aside from the mentioned ATH, there’s no key resistance level to stop the bulls in the next leg up. Once they push above it, a new high may surface at around $110,000 and potentially $115,000
Bitcoin’s key support right now is the $90,791 level. If the price breaks below it, the potential support for a retracement would be $85,072 and $81,500.
Key Resistance Levels: $104,088, $110,000, $150,000
Key Support Levels: $90,791, $85,072, $81,500
- Spot Price: $99,430
- Trend: Bullish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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