Where is the Top for Bitcoin’s Current Rally? How Should We Inte
2024-11-11

In this chart, we can see Bitcoin has gone through three main phases: "Decline," "Transition," and "Rise." In the "Transition" zone, the price stopped falling and didn’t set a new low, pausing at 48,888.0. This can be seen as a sign of market stabilization, suggesting that selling pressure is starting to weaken and the market has reached a relatively balanced state.

Following this, the price gradually lifted, showing a "higher highs and higher lows" trend, which generally signals that buyers are gaining control and the market may be entering an upward cycle. During this phase, the EMA200 has acted as a crucial support line, further confirming the formation of an uptrend.

Conclusion: From the price pattern perspective, Bitcoin's upside potential doesn’t necessarily point to a specific target, like $100,000, which is more of a round number and psychological level rather than a standard based on objective analysis.

However, by watching for a secondary high and observing multiple tests of that level, we can more accurately gauge whether the price is nearing a peak. When the price forms a noticeable secondary high (slightly below a previous high) and tests that level multiple times, it can be an early signal that the rally might be reaching its limit (similar to the pattern from March to May this year), potentially followed by consolidation or a pullback.

In other words, only when the market repeatedly tests a certain level near the peak without breaking it should we start to consider that the upward momentum may be reaching its end.