Bitcoin traders are closely watching the charts this week as BTC approaches another major breakout. After days of steady upward momentum, Bitcoin came extremely close to its 1.618 Fibonacci extension price target, signaling that another major move may be on the horizon.
Current Market Structure:
In the last 24 hours, Bitcoin’s price made a strong rally, nearly touching the 1.618 Fibonacci extension level before facing a slight retracement. However, this retracement remains minor and does not change the overall bullish structure of the market.
Across major exchanges such as Binance and Coinbase, Bitcoin’s price has yet to fully hit the exact Fibonacci target. This suggests that another upward move could occur in the coming days—or even hoursas BTC attempts to reach that critical resistance.
Retail Traders and Market Psychology:
While the overall trend remains bullish, many retail traders are currently trying to predict the market top and open short positions. This approach often leads to losses, as fighting the dominant uptrend rarely succeeds.
Traders should remember the golden rule:
“People lose more money fighting trends than trading with them.”
Instead of shorting prematurely, it’s smarter to follow the trend and look for long opportunities at areas of support.
Potential Pattern and Support Levels:
Many traders have noticed a possible Head and Shoulders pattern forming on the lower time frames. However, this setup might be misleading. The neckline of this pattern aligns with a key horizontal range support, suggesting that shorting this area could be risky.
Bitcoin appears to be trading inside a horizontal range etween recent highs and lows on the 30-minute chart. The bottom of the range, near the $121,500 level, is emerging as an important support zone.
Here’s why:
1. Golden Fibonacci Ratio: The 0.618 retracement level aligns almost perfectly with this support.
2. Liquidity Zones: Many traders have placed their stop-loss orders below this level, creating liquidity that market makers may target before pushing prices higher.
3. Higher Lows: Bitcoin recently formed a higher low, confirming the continuation of the current uptrend.
Hidden Bullish Divergences:
Looking at technical indicators, the RSI on the 2-hour and 4-hour time frames shows hidden bullish divergences Bitcoin is forming higher lows while RSI makes lower lows. This often signals that the uptrend is likely to continue.
In previous instances, similar RSI setups have preceded strong upward moves, confirming the current bullish sentiment.
Future Scenarios: Upside or Downside:
If Bitcoin dips below the recent support area, the $121,500 zone remains a high-probability buy zone. A liquidity grab or swing failure pattern near this level could trigger another powerful bounce toward the next major resistance levels.
On the other hand, if BTC continues its upward momentum without testing support, traders can expect another higher high formation — continuing the structure of higher highs and higher lows that defines an uptrend.
Key Technical Indicators to Watch:
Fibonacci Extension (1.618) – Major resistance zone yet to be fully hit
Golden Fibonacci Retracement (0.618) – Key support area near $121,500
RSI Hidden Bullish Divergences – Confirming uptrend continuation
4H Exponential Moving Averages (EMAs) – Currently aligning with support
Macro View: Weekly Close and Market Sentiment:
Bitcoin recently achieved its highest weekly close in history at $123,500, marking a new milestone for the cryptocurrency. This close has also created a new weekly support zone, which could serve as a strong base for further upward movement.
Interestingly, the Crypto Fear and Greed Index remains in the neutral zone, even as BTC trades near all-time highs. This shows that retail sentiment is still cautious, leaving room for further growth before the market becomes overly euphoric.
CME Gap and Long-Term Outlook:
While a CME gap remains open around the $110,000 level, it is not an immediate concern. Bitcoin may first continue its push higher before any potential retracement to fill this gap. The overall market structure remains strongly bullish, with altcoins also beginning to show strength a potential sign that an altcoin season could follow Bitcoin’s next move.
Conclusion:
Bitcoin remains in a strong uptrend, and shorting at current levels could be risky. The most favorable trading strategy continues to be buying at support levels, especially near $121,500, where multiple technical confluences align.
If the bullish momentum continues, Bitcoin could soon break its previous highs and reach new all-time levels, while the broader crypto market may follow with renewed enthusiasm.
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