Key Insights:
- Bitcoin remains range-bound after sweeping local highs following the October liquidation event.
- Bitcoin needs to break the $116K level to shift the market structure in favor of bulls.
- Bitcoin has broken above the 4H 200MA/EMA resistance, signaling potential bullish momentum.
- Holding above the 4H 200MA/EMA is crucial for Bitcoin’s short-term market outlook.
Bitcoin Range-Bound with Key Resistance at $116K
Bitcoin continues to trade within a range after surpassing its local highs for the first time since the October liquidation event. After the sharp drop earlier in the month, Bitcoin managed to find support and bounce back. The cryptocurrency has not yet broken free from the range, and its price is consolidating in this zone. The $116K level has emerged as a critical resistance, with analysts noting that a breakthrough here is essential for any significant market shift.
According to Daan Crypto, breaking the $ 116,000 level is crucial to reversing Bitcoin’s market structure back to a bullish trend. This level has acted as a barrier, preventing further upward movement. The market’s ability to overcome this resistance would signal a possible trend reversal, potentially setting the stage for further gains.
Break Above 4-Hour Moving Averages Gives Bulls Hope
Meanwhile, Bitcoin has recently managed to break above its 4-hour 200MA and 200EMA, which had been acting as resistance. These moving averages have proven to be a substantial barrier since Bitcoin’s sharp decline earlier in the month. A break above these levels is seen as a crucial first step for the bulls, signaling the potential for a shift in market sentiment.
These moving averages had previously acted as resistance, but Bitcoin managed to break above them. While this is a promising sign, analysts caution that Bitcoin must hold above these moving averages to confirm a shift in market sentiment. Maintaining this level is crucial for continued upward movement and for gaining investor confidence in the short term.
