BTC breaks higher
2025-01-18
Category: None



From the recent trend of Bitcoin, it can be seen that the price has experienced several key trend changes:

1. Descending channel: The price started to pull back from the high point near 108,340.67 and entered an obvious descending channel, falling to 92,458.46 at the lowest point. This range indicates that the market entered a correction after encountering strong resistance in the high point area.

2. Upward trend channel: Starting from 92,458.46, the price gradually rebounded and broke through the downward channel. At present, Bitcoin has entered a new upward trend channel, and the current price (103,182.59) is close to the upper track of the channel, showing obvious upward momentum.

Key levels

1. Fibonacci retracement level:

0.618 retracement level (102,259.76): This is the key golden section point measured from the top of 108,340.67 to the bottom of 92,458.46. The price has fluctuated in this area recently, indicating that there is a strong support and resistance conversion at this position.
0.5 retracement level (100,388.32): This position provided some support during the price decline, reflecting that the market buying was relatively active at this position.
0.382 retracement level (98,516.87): As an important dividing line, the price has formed a certain short-term consolidation in this area before.

2. Support and resistance:
Current main resistance level: 108,340.67 This is the recent highest point. Breaking through this position will significantly enhance the market's bullish sentiment.
Main support level: 92,458.46, which is the low point of this round of decline. If it falls below this level, it may trigger more selling.

Price pattern and momentum
1. Double bottom pattern:
A double bottom was formed at 92,542.93 and 92,577.50, confirming the strong support of the market in this area. The price then rebounded and gradually broke through the downward channel upward.

2. Upward trend channel:
From the channel marked by the green parallel lines in the figure, it can be seen that Bitcoin is currently climbing steadily, and the upward trend is complete in the short term. However, the price is currently close to the upper track of the channel and may face certain pullback pressure.

Trading strategy suggestions
1. Long strategy:
If the price is stable above 102,259.76 (0.618 retracement) and breaks through 103,500, you can consider entering the market to go long, with a target of 105,000 to 108,000.
If the price breaks through the previous high of 108,340.67, it may open up a larger upside space, and then you can consider chasing long.

2. Short strategy:
If the price falls below 102,000, it may indicate that the short-term bullish momentum is weakening. At this time, you can consider shorting, with a target of 100,000 or 98,500.
Pay attention to the performance of the 95,525.94 support area. Falling below this level may lead to a deeper pullback.

Risk Control
The current trend of Bitcoin is in an upward channel, and the market sentiment is optimistic, but it is also necessary to guard against the possibility of false breakthroughs. Recommendations:
- Set a strict stop loss to avoid unnecessary losses due to excessive price fluctuations.
- Pay attention to the potential impact of macroeconomic factors (such as the Fed's policy) and market news (such as regulatory dynamics) on prices.

In summary, the technical side of Bitcoin shows short-term bullishness, but it is necessary to be wary of the pressure level near the upper track of the channel. Investors are advised to flexibly adjust their strategies according to the trend.