Bitcoin appears to be maintaining its momentum after a successful break above its short-term rising channel consolidation pattern, suggesting that upside pressure is accelerating.
However, near-term support zones marked by the Fibonacci retracement levels could still attract buying interest and offer entry opportunities for bulls seeking to hop in the uptrend at better price points.
Bitcoin Correction Zones
Bitcoin has been trading within an ascending channel since April, with price currently hovering around the $102,612 level. After reaching highs near $104,282, Bitcoin retreated from resistance and could be marking the start of a corrective wave that could dip to the short-term Fibonacci retracement levels.
The bounce from this level was decisive, with bulls pushing the price back above the psychologically important $100,000 mark. This successful defense of the 61.8% Fibonacci level suggests that buyers remain in control of the broader trend, despite the recent volatility.
Currently trading at $102,612, price could soon find its way back to the 38.2% Fib at $100,149 then the 50% level at $98,872 then the 61.8% Fib closest to the broken channel top at $97,595. The 100% Fibonacci level at $93,462 now represents a distant support that would likely only come into play during a significant market correction.
The 100 Simple Moving Average (SMA) is positioned above the 200 SMA on the chart, confirming that the path of least resistance remains to the upside. As long as bitcoin continues to trade above these moving averages, the bullish structure remains intact. The converging moving averages below current price levels provide an additional layer of dynamic support that could limit downside movements.
Oscillators Signaling Continued Momentum
The stochastic oscillator is showing strong bullish momentum, moving higher from mid-range values without yet reaching overbought territory. This suggests there’s still room for price appreciation before a technical pullback becomes likely. The absence of bearish divergence on the stochastic is another positive sign for bitcoin bulls.
Meanwhile, the MACD indicator (shown in the middle panel of the chart) displays strengthening bullish momentum with both lines trending upward and the histogram showing increasing positive values. This alignment of momentum indicators reinforces the case for continued upside in the near term.
However, traders should remain vigilant as the price approaches the upper boundary of the ascending channel, which could act as resistance around the $105,000-$106,000 zone. A break above this level would signal exceptional strength and potentially open the path to test the December 2024 highs near $109,800.
Should bitcoin experience another pullback, the key levels to watch would be the recent swing points at $100,149 (38.2% Fib) and $98,872 (50% Fib). A daily close below these levels could indicate a deeper correction, potentially targeting the 100% Fibonacci retracement level at $93,462.
From a longer-term perspective, bitcoin continues to maintain its bullish structure with higher lows and higher highs since mid-2023. Recent price action appears to be an extension of this larger pattern rather than a reversal signal.
