Bitcoin ($BTC) holds important support – bounce taking place

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As a seasoned market analyst with over two decades of experience under my belt, I’ve seen my fair share of market volatility, especially in the cryptocurrency sector. The recent Bitcoin drops have certainly left their mark, but as we analyze the current situation, there are some encouraging signs that could potentially signal a strong bounce-back.

Amidst continued volatility following recent significant drops in Bitcoin’s value from $12,000 and $7,000, some former sellers might be questioning whether it’s prudent to re-invest in Bitcoin. Despite these fluctuations, the Bitcoin trendline remains stable, as does its horizontal support at around $95,000. How high could this price recovery climb?

Two flash crashes in succession wipe out leverage

Many people, especially those affected by it, are still vividly remembering the recent cryptocurrency market collapse. Notably, Bitcoin plummeted significantly on both Monday and Tuesday, reminding some of the harsh lessons learned from the previous flash crash.

Additionally, it’s important to note that the dramatic drop in Bitcoin’s value from $12,000 to its current level, happening just a week ago, should not be overlooked. These two significant drops appear to have eliminated much of the borrowed money or leverage in the system, providing the market with a fresh start to proceed.

As Bitcoin appears to be steadily recovering, the effects of MicroStrategy’s massive $2.1 billion purchase of Bitcoin are likely influencing the market now. Additionally, the news that U.S. Spot Bitcoin ETFs acquired an additional 4,510 BTC on Tuesday could further strengthen this recovery trend.

Introducing Google’s Willow quantum computing chip might stir a bit of apprehension within the industry, given its impressive capabilities. With 105 qubits, this chip is shown to accomplish tasks in mere minutes that traditional supercomputers would require an enormous amount of time to finish.

To clarify, although this advancement is significant in quantum computing, it’s important to note that a chip with enough qubits to crack Bitcoin’s encryption remains years away. Experts predict that the number of qubits required for such a task could range from millions to potentially billions of qubits.

Major support holds for $BTC

As a researcher, I’ve been closely observing the 4-hour Bitcoin chart, and it’s evident that the rising trendline continues to hold its ground, suggesting a persistent upward trajectory for $BTC. Notably, the extended wicks below the candles indicate a surge in buying activity whenever potential issues arise, underscoring the robust appetite for Bitcoin among investors.

Currently, the Bitcoin price has reached a point where it’s encountering resistance. However, there’s a strong possibility that the buyers (bulls) will attempt to drive the price higher and surpass the 0.618 Fibonacci level at approximately $99,000. If they succeed in doing so, the next significant hurdle would be the 0.786 Fibonacci level around $101,000. Overcoming these thresholds could signal a resumption of the bullish trend.

$BTC triangle breakout?

Over the next 12 hours, it appears that the Bitcoin price may be moving in a triangular pattern. If the price reaches the peak of this triangle, and the Stochastic RSI at the chart’s base suggests this is likely, we might see a breakout, potentially leading to a target of approximately $111,000.

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2024-12-11 15:01