Bitcoin Price Analysis: BTC Looking at a Pullback to $118K Before Next Major Leg Up
Bitcoin has damaged above its ATH at the $125K area, signaling sturdy momentum.
Nevertheless, the market is now getting into a decisive section, the place consolidation or a short-term retracement may form the following vital directional transfer.
Bitcoin Price Analysis: Technicals
By Shayan
The Daily Chart
On the day by day timeframe, BTC has efficiently damaged above the flag sample that confined value motion since July, confirming a sturdy pattern continuation. The transfer above the higher boundary coincided with a surge in momentum that carried the worth into the earlier provide zone round $124K–$126K, the place sellers have began to present gentle resistance.
The bullish construction stays intact, supported by the golden cross between the 100-day and 200-day transferring averages, which proceed to act as dynamic assist strains. As lengthy as the worth sustains above $120K, the broader uptrend stays legitimate, and a clear day by day shut above $126K may open the trail towards $130K–$132K within the quick time period.
However, failure to maintain above $120K could set off a wholesome retracement towards the mid-range assist close to $115K, which aligns with the breakout construction and the 0.618 Fibonacci retracement.
The 4-Hour Chart
The 4-hour chart exhibits BTC lately rising above the $118K choice level, making it a breaker block, and rallying quickly towards the ATH zone round $125K. The impulsive nature of this transfer has created a clear imbalance, with potential retracement zones recognized between $115K and $113K, aligning with Fibonacci confluence ranges (0.618–0.702 vary).
This zone serves as a short-term re-accumulation space, and holding above it will affirm continued bullish management. The market is at present consolidating close to a liquidity-dense space, suggesting that a transient pullback may entice renewed shopping for curiosity earlier than the following leg increased.
If the worth fails to defend the $118K breakout block and the $113K-$115K Fibonacci vary, the following key demand lies round $ 109K–$110 Okay, the place sturdy shopping for beforehand initiated the breakout.
Sentiment Analysis
By Shayan
The newest 1-week Binance liquidation heatmap reveals a vital buildup of liquidity zones, with significantly dense liquidation clusters forming round $128K–$130K. These high-density areas point out the place a massive quantity of leveraged quick positions has amassed, making them perfect targets for potential value continuation or liquidity sweeps.
Throughout the latest rally from $110K to above $123K, we will observe a regular absorption of lower-level liquidity, every upward impulse clearing prior quick positions earlier than consolidating. The presence of main liquidation pockets under the present value, particularly across the $120K area, highlights that draw back danger can be in play within the quick time period, suggesting that the market remains to be poised for a pullback or correction earlier than the following transfer.
This shift displays a market positioning bias the place late sellers are getting into shorts close to resistance, giving Bitcoin room to lengthen upward towards $128K–$130K as these positions are pressured to shut.
If the worth maintains its footing above $120K, a short-squeeze continuation into the higher liquidity band seems probably earlier than any significant retracement happens.
The submit Bitcoin Price Analysis: BTC Looking at a Pullback to $118K Before Next Major Leg Up appeared first on CryptoPotato.
