Bitcoin Price Weekly Outlook
Well, the bitcoin price action looked quite bearish after last week’s close, but the bulls managed to maintain the bullish structure around the $90,000 level and made it push up to the $98,000 resistance. The price retreated from there and closed the week at $93,638. Expect the bulls to make another run at the $98,000 resistance level this week and target the upper end of this $103,500 resistance zone if they can sustain price action above $98,000. Early in the week, support at $91,400 may be tested and must hold for the bulls to continue their charge.
Important support and resistance levels now
The bulls have finally made some progress, shedding overhead resistance. The bulls will look to regain the $94,000 level as near-term support this week. If they can keep the momentum going, they will again challenge the $98,000 resistance and try to push to the upper end of this zone at $103,500. Closes at the upper end of this zone should initiate a move up to the next major resistance zone at $106,000 to $109,000. This area should be very strong resistance, but $116,000 lies outside this range at the 0.786 Fibonacci retracement if the bulls’ strength can continue.
Look for the bulls to defend the $91,400 level with authority, as a loss of this level would give the bears some renewed confidence to push the price even lower. $87,000 would look to contain price action below and act as a doorway to the major $84,000 support level. Breaking the $84,000 support opens up the low $70,000 area for a test.
Outlook for this week
The Bulls should look to capitalize on their recent determination heading into this week. Look for another test of $98,000 if they can manage to regain $94,000 early this week. However, a more bearish test of the $91,400 support is also possible here, but as long as bulls can hold this level, the bullish bias remains and re-challenge of $98,000 is in the cards. Closing a day above $98,000 should take the price towards $103,500.
Market Sentiment: Slightly Bullish – The bulls finally managed to show some resilience here as they defended the $90,000 area last week. Price action is leaning in their favor heading into this week.
The next few weeks
The bulls have been holding on to some momentum over the past week, but they are heading into some heavier resistance areas now. If bulls can push even higher, above $100,000, they will start to enter an area where we could see a big price reversal. $103,500 to $109,000 should be a tough zone to conquer and we shouldn’t be surprised to see the price kicked down again with authority from this area over the coming weeks. Holding support from there would be crucial in determining whether this rally can keep going to new highs or if it finally gives way to new lows below $80,000.
Terminology guide:
Bulls/Bullish: Buyers or investors expect the price to be higher.
Bearish: Sellers or investors expect the price to fall.
Support or level of support: A level where the price should hold for the asset, at least initially. The more support, the weaker it becomes and the more likely it is not to hold the price.
Resistance or resistance level: Opposite support. The level that is likely to reject the price, at least initially. The more touches at resistance, the weaker it becomes and the more likely it is not to hold the price back.
Fibonacci retracements and extensions: Ratio based on what is known as the golden ratio, a universal ratio regarding growth and decay cycles in nature. The golden ratio is based on the constants Phi (1.618) and phi (0.618).