Bitcoin ($BTC) Price Surges: $100,000 or Crash?

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As a seasoned researcher with more than a decade of trading under my belt, I can confidently say that Bitcoin is a cryptocurrency that never ceases to surprise and challenge even the most experienced traders. This recent breakout above the $91,000 level has caught many by surprise, and it’s yet another reminder that we should always stay alert when dealing with this volatile asset.

Looking at the short-term chart, it appears that a range is forming between the current resistance level and the previous high of $100,000. While I’m not one to make predictions, if the bulls can push the price upwards, we might see another attempt at $100,000, or even a local higher high. However, it’s important to remember that Bitcoin is like a rollercoaster ride without a seatbelt – buckle up and hold on tight!

Zooming out into the weekly time frame, the bullish case for Bitcoin becomes clear as day. The breakout of the bull flag has taken us well beyond the formidable $69,000 resistance, which had been holding strong for three long years. With the price currently bouncing off the powerful ascending trendline that’s been in the making for nearly four years, it seems that we might be witnessing a new chapter in this bull market.

So, what’s my advice? Keep your eyes on the weekly price chart and forget about all those indicators that can sometimes cause unnecessary worry. And remember, as the old saying goes: “When Bitcoin is going up, don’t question it. When Bitcoin is going down, don’t panic.” After all, even a stopped clock is right twice a day!

Despite anticipation of another drop in Bitcoin’s price, it surprisingly rebounded from approximately $91,000. The question now is whether the bullish momentum can push Bitcoin’s value over $100,000 or if we’ll see a resurgence towards the long-standing ascending trendline originating from 2021?

Bitcoin keeps market guessing

Bitcoin consistently leaves market participants in suspense. For traders who aren’t attentive regarding Bitcoin’s movements, it could result in learning a harsh lesson, potentially multiple times over.

Rather than dipping beneath the long-standing trendline that originates from the 2021 bull market’s double top, Bitcoin’s price chose instead to adhere to this trendline, even more remarkably, it surpassed its recent downward trend.

Market structure builds above $91,000

The current BTC chart displays a clear structure with prices consistently above $91,000. A price range is emerging, extending from this lower level to the current range peak at approximately $100,000. This range has been active since mid-November, and during this period, we’ve observed a significant deviation when a new all-time high of more than $108,000 was reached.

If Bitcoin’s bullish supporters manage to push its value beyond the present obstacle (resistance level), there might be another try for reaching $100,000, potentially setting a new temporary peak (local higher high).

In simpler terms, the important point for optimistic investors is that the downward trend has been broken and a new peak slightly higher than the previous one has been reached. Even if the price drops again from this point, a lower low could still be established. Meanwhile, the price movement within this range helps form a solid structure that can serve as a foundation for future upward momentum.

Forget all the indicators – just look at the weekly price chart

Looking at a broader weekly perspective, it’s clear that Bitcoin could continue its bullish trend in the remainder of this market surge. While there might be specific indicators causing unease among traders and investors, if we focus on the main trends from this chart, things appear to be progressing as expected, especially for those who are optimistic about the market.

The upward surge beyond the bull flag propelled Bitcoin’s price significantly above the long-standing resistance of $69,000, a barrier that had held firm for three years. Once a new record high at $108,000 was reached, a normal correction moved the price back to the ascending trendline, a line that has amassed significant strength over nearly four years. The numerous wicks on the candles in the past six weeks, pointing down towards this trendline, demonstrate the strong support it has provided so far.

By examining Fibonacci levels derived from the $45,000 bull flag bottom and reaching as high as the record peak of $108,000, it’s evident that the 0.236 level is the one currently supporting the price. If this support persists and the price recovers from here, such a minor pullback would indicate an extremely optimistic outlook for the future. Caution should be exercised when shorting Bitcoin.

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2025-01-02 17:12