Bitcoin (BTC) Trading Near Golden Ratio Resistance, Will Bulls Break Through or Reverse?

Bitcoin is currently trading near a critical resistance zone around $94,250, a level known as the golden ratio in Fibonacci analysis. This level is considered highly

Bitcoin price is currently hovering near a crucial resistance zone at $94,250. This level is recognized as the golden ratio in Fibonacci analysis, a measure that holds significance in both technical trading and natural patterns.

At this point, it is still too early to determine what the next major move will be. Traders are closely monitoring the price action and technical indicators for clues. A breakout above the $94,250 resistance could propel Bitcoin towards the next resistance zone between $108,494 and $112,494. Further strong gains from there could push the price towards the triple-zero level at $130,000.

On the other hand, a failure to break through resistance and a subsequent drop from current levels could signal weakness. Key support is seen between $84,526 and $88,494. A breakdown below this zone could increase the risk of a deeper correction towards the next strong support at $76,494.

In the short-term outlook, the MACD indicator is in bullish territory, and the RSI is still in mid-range, indicating that there is still room for further upside. However, the Chaikin Money Flow is showing a slight out ow of capital over the past few days, which could be a sign of some selling pressure.

So far, Bitcoin price has shown signs of a possible five-wave move from its April low. If this pattern completes, it would be a clear indication of bullish strength and could pave the generation of a new bull market.

However, if the move turns out to be only a three-wave structure, it may signal that the market is still in a broader bear trend, and this recent rise was just a temporary recovery rally.

Key support for the current trend is located between $84,526 and $88,494. As long as the price stays above this zone, the outlook remains positive. There is also a minor support zone between $91,047 and $93,581 that could help to stall any further declines in the coming days.

In addition to the Fibonacci levels, traders are also keeping an eye on other technical indicators for further signals. A breakout above the $94,250 resistance with strong momentum could indicate a continuation of the uptrend.

If the price shows weakness and drops below the key support zone, it could increase the risk of a more significant correction.