Instrument: BTCUSDT
Time Frame: 2H
Exchange: Binance
Trading Type: Swing/Day Trading
Bitcoin Technical Analysis: Evaluating Key Levels Amid Bullish Momentum
Introduction:
The Bitcoin market has been demonstrating a critical test of support and resistance zones as it consolidates within a defined ascending channel. The recent price action, as observed on the 2-hour chart, provides significant insights into potential bullish continuation scenarios.
Key Observations
The Importance of the Gray Box Region:
The gray box highlighted on the chart has acted as a crucial support zone. Bitcoin recently tested this region during its retracement phase, holding steady and showing signs of recovery. This suggests that buyers remain active, defending this level as a critical area of accumulation.
Channel Integrity:
The price remains confined within the ascending channel, indicating that the broader uptrend structure is intact. The lower boundary of the channel has provided dynamic support, reinforcing the idea that this pullback could be a healthy correction in an ongoing bullish trend.
Hidden Bullish Divergence:
A hidden bullish divergence is visible on the RSI indicator, signaling potential upward momentum. This divergence typically suggests that the retracement phase is losing steam and a rebound may be on the horizon.
Crucial Levels to Watch
For Bitcoin to confirm a continuation of its bullish trend and dismiss the recent decline as a mere correction, two key steps need to materialize:
Breakout Above the Descending Trendline:
The downward black trendline, connecting the series of lower highs from the recent retracement, serves as a critical barrier. A strong breakout above this line is required to invalidate the short-term bearish pressure and reignite upward momentum.
Flipping the $103,300 Zone:
The horizontal level at $103,300 represents the next major hurdle. This area aligns with the 2nd significant support-resistance flip zone. To establish a convincing bullish case, Bitcoin must:
#1. Break through this level with high trading volume.
#2. Retest this zone successfully, confirming it as new support ("retest and hold").
#3. Secure a stable position above this threshold, which would suggest strong buyer conviction and pave the way for further gains.
Market Sentiment and Outlook
The recent retracement following the FOMC-induced volatility could be interpreted as a “healthy correction” within a bullish structure, provided that the conditions mentioned above are met. This would validate the market's resilience and suggest further upside potential.
Failure to break above the $103,300 level, however, could lead to prolonged consolidation or even a retest of the gray box support zone. Traders should monitor these critical levels closely and wait for confirmation signals before positioning themselves.