- Bitcoin price trades higher, with a greater than +10% gain from the Monday lows.
- Intense Fibonacci and Ichimoku resistance levels could stall further upside momentum.
- A bull trap could generate a BTC continuation move south.
Since Monday, Bitcoin price has made some impressive moves, driving higher from the Monday lows of $43,444 to the current weekly high at $46,134. Bulls have pushed Bitcoin price higher with little resistance or retracement. However, strong resistance levels could trigger an end to the current bullish momentum.
Bitcoin price charges higher, key resistance levels ahead could trap bulls
Bitcoin price has maintained a steady and unchecked drive higher since hitting the $43,000 value area on Monday. Very little, if any, selling pressure has occurred over the past three trading days. However, some selling pressure should be expected near the $48,000 value area.
The daily Kijun-sen and Tenkan-Sen share the $48,000 level with the powerful 61.8% Fibonacci retracement level. The combination of these Ichimoku and Fibonacci levels creates a natural stopping point for Bitcoin price. The Ichimoku indicator that bulls will need to watch for is the closing position of the Lagging Span. If bulls can close Bitcoin above $49,500, then Bitcoin will be in an undeniable bullish phase, one that will likely see it return to its prior all-time highs.
BTC/USD Daily Chart
On the flip side, bears will need to see how Bitcoin price reacts to the near-term resistance. If they can push Bitcoin price lower and close anywhere below $46,700, then a $40,000 value area test is highly likely. The Relative Strength Index shows a very neutral condition and the Optex Bands indicate neutral to slightly extended given the slope of its line.
The Composite Index will likely be the triggering event for any bullish expansion. Bulls and bears will want to observe what happens when the Composite Index crosses its fast and slow-moving averages. A slope that is shallow signals weakness. It's a tricky area for both sides of the market, so vigilance is vital.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.