On Monday (December 16), after Bitcoin broke through $106,641 to set a new all-time high, it slightly retreated to oscillate around the $104,600 level. The market is active, with a 24-hour trading volume reaching $82 billion and market capitalization soaring to $2.08 trillion. Technical analysis indicates that moving averages are uniformly bullish, but MACD suggests caution in the short term.
Bitcoin has shown strong bullish momentum in recent trading, breaking through the psychological barrier of $105,000 and reaching the historical high of $106,533. This breakout marks a significant enhancement in market sentiment for Bitcoin, accompanied by high trading volume reflecting participants' enthusiasm.
Short-term support is seen around $104,000, which is a critical buying area. Resistance currently lies near the historical high of $106,500. High trading volume alongside price breakouts indicates that the market may be entering a stage of higher price exploration. When prices pull back to the $104,000-$104,500 range, it may present an opportunity for short-term traders to enter, with target prices potentially set at $106,500 or higher. If buying strength continues to remain strong, Bitcoin is expected to rise further, ushering in a new upward trend. Bitcoin reaching new all-time highs not only reflects the current bullish sentiment in the market but could also drive activity in other crypto assets and altcoin markets, further stimulating market liquidity and attention.
The 4-hour chart consolidates Bitcoin's steady climb, with the peak at $106,533 reinforcing the bullish narrative. Support remains stable between $102,500 and $104,000, while resistance extends to $108,000.
A decline or consolidation around $104,000 may lay the groundwork for more bullish trades, although breaking through $106,500 looks promising, given the substantial trading volume supporting it.
The overall upward trend of Bitcoin on the daily chart, despite occasional setbacks, remains strong. The key support levels at $100,000 and $104,000 provide a solid foundation for the current price action, while the peak at $106,533 constitutes significant resistance. If Bitcoin can successfully break and close above this level, it may trigger further upward movement, potentially targeting $110,000.
Meanwhile, a price pullback to the $104,000-$105,000 area provides an excellent entry opportunity for long-term investors. This range not only has technical support but also reflects strong buying power. Against a backdrop of ample market liquidity and high sentiment, Bitcoin is expected to maintain its upward trend and become the driving force behind the activity in the crypto market.
The Relative Strength Index (RSI) is at 69, and the Stochastic Indicator is at 89, suggesting the market is in a neutral state and approaching overbought conditions, while the Momentum and Moving Average Convergence Divergence (MACD) indicate caution in the short term as bearish signals continue to flash.
Moving averages, including Exponential Moving Average (EMA) and Simple Moving Average (SMA), are quite bullish across the 10, 20, 30, 50, 100, and 200-day periods, consistently lagging behind the current price.
Bitcoin has reached a historical high of $106,533, combined with bullish momentum across multiple time frames and strong support at key levels, indicating a favorable outlook for continued price increases.
With moving averages consistently showing positive signals and sustained trading volume supporting the trend, Bitcoin appears poised to reach $108,000 in the coming trading days, and possibly even $110,000.
Although Bitcoin's bullish momentum is undeniable, conditions of overextension include proximity to the key resistance level of $106,533, along with neutral signals from oscillators like the Relative Strength Index (RSI) and Stochastic Indicator, which increase the likelihood of short-term profit-taking.
A drop below $104,000 may signal a reversal; if selling pressure intensifies, there is a risk of a pullback to $102,500 or lower.
