Bitcoin (BTC) market faces uncertainty despite recent bullish momentum. With a 3% increase in 24 hours, experts ponder: could the leading cryptocurrency correct towards $114,000 soon? Let's delve into the technical analysis.
At the time of writing, Bitcoin (BTC) is trading around $114,752, showing a decline after Friday evening’s euphoria when it reached $117,300. Indeed, behind this rise lie technical signals that deserve close attention.
According to CoinStats data, the top 10 cryptocurrencies display an overall increase, but Bitcoin remains below a decisive technical level in the short term.
The Bitcoin created a CME gap this Saturday, losing approximately 1.87% of its value since the opening of Saturday’s trading session. So far, CME gaps have almost always been filled in the days that follow, which suggests BTC could bounce back to $117,000 in the next few sessions.
Key technical indicators such as the RSI in neutral phase but declining, along with a bearish divergence on the MACD, complete this mixed picture. Additionally, the decrease in volume signals a weakness in buying interest.
On larger timeframes, Bitcoin‘s configuration reflects a hesitant recovery. Yesterday’s bullish candle hasn’t been confirmed by new highs, demonstrating a lack of conviction from the bulls.
BTC has indeed failed to establish a stable support above $116,000. Closing below this threshold increases the risk of a return to $114,000. From a chartist perspective, a lateral consolidation pattern could form in the coming days.
A bearish trendline has formed, and the resistance between $117,000 and $118,000 could take several days to break. The liquidity zone at $113,500 might therefore also be revisited in the next sessions.
In this context, we should anticipate a likely short-term price range between $113,000 and $118,000, with low expected volatility, barring any major macroeconomic catalyst.
If this zone is broken with strength and the trendline is liquidated, Bitcoin could target the liquidity zone at $122,000 afterward. Indeed, numerous shorts are positioned in this price zone, waiting to be liquidated. A situation worth monitoring closely.
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Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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