Bitcoin Price Consolidates: Breakout or Correction?
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Bitcoin's price is consolidating below its all-time high, around $103,000, creating uncertainty in the market. Bullish momentum has weakened as equities outperform Bitcoin, a divergence that suggests caution. Analysts are closely watching for a decisive breakout above the $105,000 resistance level, which could trigger a new bull phase and propel Bitcoin into price discovery. However, significant selling pressure persists near current levels, raising concerns about a potential correction. Crypto analyst Daan highlights $90,000 as a crucial support level; a drop below this would signal a structural breakdown. He remains cautiously bullish while Bitcoin stays above $90,000 but acknowledges that the risk-reward ratio was more favorable at lower prices. A correction in the equity markets could also negatively impact Bitcoin's price. The 4-hour chart reveals a tight trading range between $105,700 and $100,700, indicating an imminent significant price movement. Bitcoin is currently above its 200-day EMA and SMA, supporting a medium-term bullish structure. A decisive break above $103,600 with increased volume could signal a move towards $109,000, while a failure to hold this support could lead to a retest of the $96,000 area. The current situation is characterized by a tight trading range and uncertainty, making the next price movement critical in determining Bitcoin's short-term trend.
