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Bitcoin Momentum Building Tension Towards Upside

Last Updated February 11, 2024 3:20 PM
Andrew Kamsky
Last Updated February 11, 2024 3:20 PM

Key Takeaways

  • Bitcoin consolidates above $42,500, poised for a breakout if resistance at $43,500 is surpassed.
  • Gradual uptick observed as Bitcoin overcomes resistance, targeting potential rally to $46,200-$52,000.
  • Failure to surpass $43,500 could lead to a decline, with critical support at $41,800-$38,800.
  • Ascending triangle on the 4Hour chart suggests bullish momentum, with a breakout target of $44,500.

Bitcoin Momentum Building At $42,500

Bitcoin’s value stabilizes above the support level of $42,500, with the potential for a bullish breakout to the upside if BTC breaks above the resistance at $43,500. Despite challenges in breaching resistance at $43,400 and $43,500, Bitcoin maintains its position above $42,500 as the digital gold cryptocurrency continues to trend to the upside. 

Bitcoin Short-Term Upward Channel
Bitcoin Short-Term Upward Channel

Current 4HR Bitcoin Trajectory Points Upward

After holding support above $41,800, Bitcoin has begun a gradual move upwards, overcoming resistance at $42,200 and $42,500, and reclaiming its position above the 20 and 100 hourly EMA on the 4Hour chart. 

BTC 4Hour Chart Resistance
BTC 4Hour Chart Resistance

Resistance near $43,200 and $43,600 will be close to the 61% short term 4Hour fibonacci level, which has proven a challenging area to get above in recent days. However, Bitcoin is currently positioned above $42,650 sitting in between the 61% and 50% fibonacci level and above the 20 and 100 hourly EMA. If Bitcoin can push above immediate resistance at $43,600. The successful breach could lead to a notable rally, potentially reaching $46,200-$52,000 mark.

BTC 4Hour Fibonacci Extensions
BTC 4Hour Fibonacci Extensions

Traders Beware: Potential For A Bitcoin Setback

Traders beware, failure to push above $43,500 resistance may trigger a fresh decline. If price does not hold the 50% fibonacci level or the 20 EMA then there is reason to believe that price might fall back below the current support levels mentioned above at around $42,200. A drop below $42,200 will likely intensify bearish momentum, possibly driving the price down to the $41,800-$38,800 support zone.

Ascending Triangle: Chart Pattern On 4Hour

On the 4-hour chart for Bitcoin, the formation of an ascending triangle chart pattern may be observed with three touches on both support and resistance, indicative of potential bullish momentum and confirming an ascending triangle pattern. Should the technical structure remain intact, an anticipated breakout may occur on or before February 10th, 2024, aiming for a price target of $44,500. 

Newly Formed BTC Short-Term Ascending Triangle
Newly Formed BTC Short-Term Ascending Triangle

Overcoming this threshold would effectively breach the preceding resistance level, reinforcing the bullish outlook and setting the stage for Bitcoin’s price trajectory towards the $48,000 to $52,000 region.

Disclaimer

​​The information provided herein is for educational and informational purposes only and should not be construed as financial advice, investment recommendation, or an offer or solicitation to buy or sell any securities. Cryptocurrency investments are volatile and high risk in nature, do not invest more than you can afford to lose.

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