TradeCityPro | Bitcoin: Dominating Crypto's Throne
2025-01-31
Category: None

👋 Welcome to TradeCityPro! 
Today's analysis is on Bitcoin, the undisputed king of cryptocurrency, leading with the highest market cap and dominance.

 📅 Weekly Timeframe 
We're witnessing a robust upward trend that began from a low of $15,922. After breaking through the consolidation range between $25,000 and $30,600, Bitcoin embarked on an impressive rally up to $70,831, setting a new all-time high (ATH) beyond the previous peak at $69,000.

🔍 Following the peak at $70,831, Bitcoin entered a roughly 250-day reaccumulation box ranging between $54,972 and $70,831. The $54,972 area was critical as it also aligned with the 0.236 Fibonacci level.

🧩 After 250 days, Bitcoin finally secured a position above $70,831, initiating the third leg of its ascent, reaching up to the 0.618 Fibonacci extension level around $106,000. Currently, the price has been ranging for several weeks, establishing a reliable base around $92,000, more noticeable in shorter timeframes.

🚀 I believe Bitcoin’s final bullish leg has not yet concluded, and we could soon see a breakout above $106,000, aiming for targets like $126,000 and $158,000, corresponding to the 0.786 and 1.0 Fibonacci extension levels. These targets seem logical for Bitcoin, but there's an even more ambitious dynamic target to consider.

✅ If Bitcoin surpasses these levels without significant resistance from Fibonacci levels, we could derive an upper target from the RSI. The 88.88 resistance in the RSI has historically capped Bitcoin’s peaks twice.

💥 However, RSI alone does not offer a precise price target as it heavily depends on momentum, but it suggests a potentially unreachable goal, which we should consider to keep our bases covered.

📊 Market volume currently favors the bullish trend, diminishing during corrections and rising with the trend, indicating a convergence of volume and direction. However, an increase in sell volume could signal a potential trend reversal, given Bitcoin's substantial rise.

📉 If a downturn initiates, Bitcoin has robust support at $70,000—the previous ATH—and other critical Fibonacci areas like $55,000, $47,000, and $37,000 that could act as barriers against sharp declines. Additional supports at $30,000, $25,000, and $15,900 could prevent deep falls during severe corrections.

✨ A break below 44.14 in the RSI could be critical as it has defined Bitcoin’s lows several times, indicating significant momentum shifts.

 📅 Daily Timeframe 
In the daily view, Bitcoin's recent trajectory is clearer. Breaking through the resistance at $72,981 with substantial volume, it ascended to $106,436.

🔼 Currently, after reaching this resistance, volume has decreased, and a price box has formed between $92,355 and $106,436. Given the strong upward momentum observed in the weekly timeframe, breaking the $106,436 resistance could propel Bitcoin towards the targets discussed earlier.

⚡️ Noticeable divergence in the RSI, although it doesn't necessarily indicate a weakening trend since there are no signs of divergence in candlestick patterns or volume, suggests a reset in momentum is likely.

💫 A fall below 41.12 in the RSI might trigger a bearish momentum, with $92,355 being a crucial support. If this level breaks, the next supports will be between $84,000 and $89,000, aligning with Fibonacci levels of 0.5 and 0.382. Beyond this, we might see a significant downturn towards $72,981, aligned with the 0.786 Fibonacci level.



 ⏳ 4-Hour Timeframe 
In the 4-hour chart, we find Bitcoin in a smaller range between $101,360 and $106,436, near a strong supply zone.

📈 For long positions, the only current trigger is breaking $106,436. For a safer entry, wait for the upper range to break before entering.

🔽 For shorts, the $101,360 level acts as an appealing trigger, having previously demonstrated significant support. Potential short targets are at $95,239 and $91,757.



 📝 Final Thoughts

This analysis reflects our opinions and is not financial advice. 

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