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Bitcoin (BTC) is currently facing a critical resistance zone between $84,000 and $84,500, where strong selling pressure has been observed. Over the past three days, BTC has been trading within a range of $77,000 to $84,500, indicating a Compression Phase before a breakout or breakdown.
This consolidation phase suggests that a major price movement is imminent.
Bitcoin Price Analysis: Consolidation & Resistance Zones
Bitcoin is currently experiencing a strong supply zone around the $84,000 – $84,500 resistance level. If BTC manages to break and sustain above $86,000, it could trigger a bullish rally towards $90,000 and beyond. However, failure to break this level may lead to further consolidation or downside movement.
Support Levels:
- $79,000 – $80,000: Currently acting as a key support zone.
- $77,500: If BTC breaks below this level, further downside is expected.
- $73,000 – $71,000: The next major support zone if bearish momentum intensifies.
Resistance Levels:
- $84,000 – $84,500: Immediate resistance with strong selling pressure.
- $86,000: A crucial breakout level; sustained price action above this could lead to a bullish trend.
- $90,000: A potential price target if BTC successfully clears the $86,000 and sustains above in higher timeframe, then the price will reach 90k.
Market Outlook & Potential Price Movement:
- Bearish Scenario: If BTC fails to hold the $79,000 – $80,000 support zone, and breaks below $77,500, the price could decline further toward $73,000 – $71,000.
- Bullish Scenario: If BTC breaks above $86,000 and closes above this level on higher timeframes, bullish momentum could take BTC toward the $90,000 mark, attracting further buyer interest.
Final thoughts:
Bitcoin is consolidating between $77,000 and $84,500, indicating a Compression Phase before a breakout or breakdown. Traders should closely monitor the $86,000 resistance level for potential bullish confirmation or watch for a breakdown below $77,500 for a bearish move. With increased volatility expected, strategic risk management is crucial for both short-term and long-term traders.
Disclaimer: This analysis is for informational purposes only and should not be considered financial advice. Always conduct your research before making investment decisions.
[…] recent breakout above $84,000 signals a potential shift towards a short-term uptrend, but Bitcoin still faces resistance at $84,500 – $84,700. Traders should closely monitor […]