Bitcoin experienced a significant decline last Sunday night, plummeting to $111,800. The price subsequently rebounded to challenge the $113,800 resistance level and the 21-day EMA at $114,000, but faced rejection at that point, descending back to the $111,300 support level. The bulls experienced another bounce at this level, reaching back to the 21-day EMA, but were once again denied entry above the $113,800 resistance level, resulting in a drop just below the weekly support at $109,500 on Thursday. The price surged from the Thursday low, wrapping up the week at $112,225.
FOMC rate cuts are on the horizon as Bitcoin maintains its position above the $109,500 EMA. Key support and resistance levels are now in focus. With the price closing above the 21-week EMA at $109,500 to wrap up the week, bulls are now eyeing this support level to maintain its strength moving ahead. $109,500 is expected to serve as the floor as we head into this week, crucial for the bulls to establish a weekly higher low and initiate a turnaround. The next support level is set at $105,000, with a significant possibility of a major reversal occurring from that point down to approximately $102,000. The drop of $102,000 paves the way towards significant long-term support, positioned at $96,000.
Bulls are eyeing a close above the $115,500 resistance level as a crucial move to re-establish the uptrend. This could instill confidence in the bulls to confront the $118,000 resistance once more and potentially push beyond it. $121,000 stands as a crucial threshold for reaching new highs, but it may not remain intact for long if we achieve a weekly close above $118,000. Anticipate a price re-test of the $109,500 low early in the week, with the possibility of establishing this level as support for a bullish rally back up to $113,800. Strong buying pressure will likely be necessary to break through the $115,500 resistance level this week. If $113,800 can be surpassed, anticipate that this resistance will continue to cap any upward movement.
Bulls are aiming to establish a green candle this week to validate last week’s movement as a higher low. The weekly chart continues to reflect a bearish bias, suggesting that the $113,800 resistance level is likely to remain intact in the near term. A drop of $109,500 on the daily chart may trigger a significant price decline this week, potentially reaching new lows and testing the support zone between $105,000 and $102,000.