- After reclaiming $93K, Bitcoin muses $100K, indicating a possibility of a significant rally.
- Although bullish momentum currently exists, global tensions still pose additional risks.
- Support key levels: $89K support, and breakout target $100K.
Bitcoin is clearly showing strong momentum higher as it continues to trade above the $93,000 level. The cryptocurrency has now started to shift into a recovery phase following weeks of uncertainty and volatility. Now, market observers are watching the important $100K threshold. If it is reclaimed, it might indicate a sustainable rally, pave the way for Bitcoin to go above the new high, and usher in the next bull leg.
Even with an upbeat mood, there is still considerable risk. Global markets are constantly unstable because of the tensions between the United States and China and the ongoing trade conflict. At the same time, investors try to operate in a sedate spot with a greasy impact once anything unfortunate occurs in Bitcoin and related risk assets.
Crypto analyst Daan has posted a technical analysis predicting a strong bounce and continuation of Bitcoin from the 0.382 Fib Retracement level. Historically, this historic Fibonacci zone has always continued the uptrend as confirmation if it holds as bearish support, which is quite often the case.
Bitcoin Enters Critical Phase as Bulls Seek Further Gains
As you can see, Bitcoin is at a pivotal moment, and its price behavior in the following weeks will determine the course of the short and medium-term trend. Bulls have since been able to briefly regain short-term control of the $93,000 mark, but they are still careful since any significant negative catalyst could suffice to flip the current momentum against risk assets, including Bitcoin.
Analysts are uncertain about the cryptocurrency’s future. Some believe Bitcoin is ready for a run well past its all-time highs (ATH) in the coming days due to growing institutional flows and a change in risk appetite. However, some experts express apprehension about the fragile macroeconomic backdrop and point out that the potential downside risks aren’t fully apparent.
However, Daan is optimistic and says that Bitcoin’s current trend structure is more mature than previous cycles. He notes that the trend has slowed, steered, and become more reliable, featuring fewer extreme swings and providing better long-term positioning for investors.
Markets are showing resilience and strong demand, as the recent strong bounce and continuation from the 0.382 Fib retracement level tells Daan. Generally, Bitcoin has proven its ability to hold this Fibonacci zone in an uptrend in history.
Key Price Levels to Watch: $100K and $89K
On an earlier day today, Bitcoin briefly passed $95,800 before settling at about $94,700. The real test is at the psychological $100,000 level, and bulls are showing strength. A break above this mark would be considered a major rally, breaking into new uncharted territories and stimulating an even new wave of bullish momentum in the wider market.
However, a few analysts argue that there is a possibility of a retracement from current levels before Bitcoin can make a concerted effort towards six figures. This is after a strong multi-week rally has burnt enough runners, meaning profit taking and a chill in the market would be expected to reset funding rates and sentiment prior to the next major run-up.
On the downside, the key level to focus on and stay below is $89,000, where the 200-day MA resides. This is a vital support level and a crucial trend indicator. So long as Bitcoin stays above the 200-day MA, the bigger trend is still intact, and pullbacks could be viewed as an opportunity to buy for investors.
