Bitcoin (BTC/USD) appears poised to cross the $100,000 mark again as current price action aligns with bullish technical indicators on the daily chart. Here’s a quick breakdown:
- Donchian Channel Basis Acting as a Magnet:The basis of the Donchian Channel sits at $100,252, which is currently acting as a price magnet. This behavior is reasonable because the basis (halfway point between the recent high and low) often represents equilibrium where buyers and sellers converge. Markets naturally gravitate toward this „mean“ before deciding on the next significant move, and with Bitcoin’s price steadily climbing, the basis is drawing it upward.
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RSI Trending Bullish:The RSI (Relative Strength Index) at 54 is comfortably above the 50-neutral line, indicating mild bullish momentum. Notably, it has been rising for the past three days, signaling strengthening buying pressure. While not yet overbought, the RSI hints at further room for upside.
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Momentum and Price Structure:Recent candles show a sequence of higher lows, reinforcing the short-term bullish structure. If the $100,252 level is breached decisively, it could act as a springboard for a move toward the recent highs near $108,000.
Outlook:
- Primary Target: Breaching $100,252 should open the door for a test of higher levels, with $105,000 and $108,000as key resistance zones.
- Support to Watch: A failure to sustain above $99,000 could lead to consolidation near $96,000.
Overall, with the RSI rising and the Donchian Channel basis acting as a magnet, Bitcoin seems well-positioned for another push above $100,000. Keep an eye on how price interacts with the basis for confirmation of the next directional move. There are many ways to perform technical analysis and none of this is a crystal ball so always do your own research and invest or trade bitcoin at your own risk only. Visit ForexLive.com for additional views.
This article was written by Itai Levitan at www.forexlive.com.