- Bitcoin tests key $99,900 resistance level, with potential to surge towards $123K if breakout occurs.
- After filling CME gap, Bitcoin rebounded sharply from $97K to $99.9K, reinforcing bullish sentiment.
- Altcoins like Ethereum show strong potential as Bitcoin dominance wanes and market shifts toward altcoin rally.
Bitcoin is in the process of testing one of the most important resistance levels, which has brought some hope back into the market. The cryptocurrency has recently managed to overcome a critical level on the hourly chart, opening the way for a new surge. This comes after a CME gap was filled over the weekend when Bitcoin dropped to $97,000 and then recovered to $99,900 within a few hours.
Bitcoin’s Quick Rebound
In the recent YouTube video, Rover pointed out that the CME gap, a common pattern on Bitcoin’s chart, was closed at the expected time. Following touching the $97,000 level, Bitcoin experienced a rather sharp correction and then jumped again by almost $3,000. This quick rebound has thus reinforced the bullish perspective, and most of the traders are now targeting the next resistance level. Nonetheless, Bitcoin’s upward movement is currently limited by a major resistance level at $99,900. The result of this test will be decisive for Bitcoin’s further behavior in the short term
As for the future, the traders are waiting for a possible retracement to the $98,700 – $99,000 area. The upward movement could continue if the price bars of Bitcoin stay above this zone and, therefore, create a higher low. If the price breaks through the $99,900 level, this would probably mark the beginning of a new uptrend, with targets set at $123,000 in the near future.
Fibonacci Resistance Levels
The price of Bitcoin in the larger market continues to follow a larger uptrend channel. The 4 hour chart shows a bearish falling wedge which may lead to a breakout in the near future. This is actually the condition that, if Bitcoin validates, the cryptocurrency may experience a major price increase. The Fibonacci extension tool also shows the significance of the 1.618 level and the current position of Bitcoin is in this area. A break above this level could open the path towards the $123,000 level of resistance.
Source: CryptoRover
The market is also expecting more money purchases from the Bitcoin spot ETF after the $900 million witnessed last Friday. If the buying pressure remains relatively the same, Bitcoin may break through the current resistance and move into a new growth trajectory.
Source: CryptoRover
However, a note of caution is still in order. Bitcoin is highly price volatile and any sign of lower low indicates a change in the market direction. Nevertheless, exchange reserves of Bitcoin are decreasing, which may evidence the scarcity that still drives the price upwards.
Other parts of the market are starting to stir, and altcoins are among the first to demonstrate it. Ether, specifically, has been trading within the confines of a symmetrical triangle chart formation, and a break out could spell huge profits. The overall crypto market is slowly changing, and now it’s time for altcoins to rally due to Bitcoin’s dominance.
