Despite several attempts by the bears to crash the $BTC price down below $90,000 on Thursday, the bulls were able to win the day and hold above. More downside on Friday might see this level tested again. Can it continue to hold?
One more retest of the bull flag?
Source: TradingView
After the $90,000 horizontal support level held on Thursday, in spite of strong attempts by the bears to break it (as witnessed by the candle wicks that came down through this level), it might have been expected that a bounce would have taken the price back to the top of the bull flag.
None of it. The bounce took the price a short way up to the $91,500 horizontal resistance, and a fairly strong rejection took place there. Currently, the $BTC price is on its way back down to the already hotly contested $90,000 level, either to retest it, or for the bears to have yet another shot at breaking through it. If the bears are successful, the major trendline, combined with the $88,000 horizontal support, could be the next target.
Retest is happening
Source: TradingView
Moving out into the daily time frame it can be seen that things are moving quickly on Friday morning. Already the $BTC price has dipped to the level of the bottom of the bull flag, which is below the $90,000 horizontal support. Is the price going to carry on down to the major trendline and nullify the bull flag?
If on the other hand the bulls manage to arrest the slide and there is a bounce from here, there wouldn’t really be any harm done, and the daily Stochastic RSI indicators would have come down further. On this note, all the short-term time frame Stochastic RSI indicators have bottomed now, so upside price momentum is getting ready to kick in.
Clear path to $108,000 if breakout occurs
Source: TradingView
Looking at the weekly time frame one can note that the $BTC price has indeed bounced and is already back at the $90,000 support level. Perhaps this was one last fakeout to cause any last doubters to sell their positions before the price goes higher.
The green ascending triangle is certainly a pattern to be keeping an eye on. With a potential switch over to bullish price action going into the weekend, a breakout is certainly a decent probability.
If the price does breakout, either at the weekend or going into next week, it can be observed that there is a clear path to the very important $108,000 horizontal resistance. There will probably be a pause around the $100,000 level, but if one looks for solid price structure, this is to be found further up at that key $108,000 level. If the price gets there, this level is likely to have a say in whether this current upside move has legs, or whether it is just a bear market rally.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
