Bitcoin (BTC) Breaks Above Key Resistance, What's Next?

The cryptocurrency market is showing a strong performance as Bitcoin leading the charge. Looking at weekly performance, Bitcoin saw an impressive 9% increase

As the cryptocurrency market continues to rebound, Bitcoin is leading the way with a 9% increase over the last week. Other major cryptocurrencies also experienced gains, with Ether rising more than 3% and XRP surging nearly 34%.

The market is now waiting for its next move as Donald Trump prepares for his inauguration. Some analysts anticipate a bullish trend, while others are keeping an eye on the level of volatility that could emerge in the coming months.

Bitcoin Breaks Out Above Key Resistance

According to Crypto World analyst Josh, Bitcoin has broken above the critical $100,500 resistance level on its daily chart. This breakout comes after a period of sideways movement that reset indicators like the RSI to neutral levels, allowing for further upward movement.

The breakout, coupled with a bullish RSI, points to a price target around $116,000, indicating a potential 15% upside from current levels. However, the analyst notes that Bitcoin is encountering resistance around $106,000 to $107,000, with a possible move toward $108,000.

Should a pullback occur, Bitcoin has support at $102,000 to $103,000, with stronger support around the $100,000 level.

On the weekly Bitcoin chart, the cryptocurrency remains in a bull market, and as the second half of January progresses, the next big move could be just around the corner.

Bitcoin’s Breakout and Liquidity

The breakout is accompanied by a rise in the daily Bitcoin RSI, triggering a short squeeze and the liquidation of several short positions. Similar signals on the MACD indicator hint at a slow-down in momentum, but a big move could materialize soon.

The Super Trend indicator on the 4-day Bitcoin chart remains green, indicating an ongoing bull market. However, a bearish divergence is still present on the weekly chart, with higher highs in price and lower highs in the RSI. A confirmed breakout above $105,000 would invalidate this bearish divergence, keeping the bullish outlook intact.

Additionally, when Bitcoin’s price broke out, it triggered a short squeeze and pushed the price higher. There is still some liquidity around $105,000 to $107,000, which could help drive the price further up.

The above叙述性新闻整合旨在提供市场相关重要事件的高级概述，不应被视为详尽无遗或构成任何形式的建议。