Amid a Friday retracement in the market, Bitcoin (BTC) is making a push to reclaim a crucial support level. An analyst believes that the daily close of the flagship cryptocurrency could pave the way for a bullish end to the week, despite potential volatility.
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Bitcoin Breakout Anticipated in the Near Future
As the new quarter kicks off, Bitcoin has been testing key levels, touching the $105,000 support and $110,000 resistance over the past four days. Despite a pullback on Tuesday that saw the flagship crypto dip to a two-week low, it managed to bounce back from a critical range.
An analyst from AltCryptoGems previously emphasized the importance of a strong rebound from the key support and resistance zone between $104,000 and $106,000. Failure to hold this range could potentially lead to a drop towards the range lows around $101,000.
On Friday, the analyst highlighted Bitcoin’s price action after holding these crucial levels, which he anticipated would provide an entry point for a bounce. He noted that Bitcoin is building on its two-month Power of Three (Po3) setup, indicating the possibility of further expansion in the near future.
However, the analyst pointed out that Bitcoin is still trading within a two-month range, suggesting that price action could remain volatile until a successful breakout occurs, which was attempted earlier in the week.
“Since we are within a range, it is essential to monitor the key levels of the range: high, mid, and low,” the analyst explained, highlighting the mid-range as a crucial area where bulls need to step in to confirm a bullish move towards the range high.
In line with this analysis, the analyst predicted a potential move above the $110,000 level, where significant liquidity is concentrated. The Liquidity Heatmap for BTC shows a substantial cluster near the $111,000 area, indicating that price tends to gravitate towards liquidity, making a visit to that level likely in the near future.
BTC Aims for Crucial Closures
Having been rejected from the $108,000 level earlier in the week, analyst Rekt Capital observed that Bitcoin managed to break out of two 2-week downtrends within the past 40 days. However, it faced rejection from the critical 6-week diagonal downtrend around $108,000 during the same period.
BTC closed above this resistance twice this week and breached the $109,000 mark on Thursday. Despite Friday’s pullback that saw Bitcoin dip below this key level to $107,245, the analyst views it as a crucial retest of the pattern.
The analyst emphasizes the importance of a daily close above the diagonal resistance for a successful retest. If Bitcoin manages to close above this level, it could signify a shift from resistance to support, marking a significant development in the price action.
On another front, Bitcoin is approaching a crucial milestone as it nears the “final major Weekly resistance” around $109,000. Rekt Capital noted that a close above this level could confirm a breakout from this major resistance, potentially paving the way for a new all-time high (ATH).
With the weekend approaching and volatility on the horizon, the outcome will only be evident as the new weekly close draws near. The cryptocurrency market eagerly awaits to see if Bitcoin can secure its position above this key level.
Featured Image from Unsplash.com, Chart from TradingView.com