Bitcoin has been on an exciting ride this week, with its price soaring from a dip below $90,000 to a strong rebound above the $100,000 mark in just two days. According to Dan from The Chart Guys, Bitcoin’s sharp recovery is signaling bullish momentum as it tests key resistance levels.
Bitcoin briefly dipped under $90,000 on Monday, but two days later, it is trading around $100,000, showing impressive resilience. In an interview with Scott Melker, Dan said that Bitcoin’s failure to remain below the $92,000-$90,000 range is an encouraging sign. “Whenever Bitcoin keeps breaking a level with no follow-through, it often forms a wedge pattern, which could lead to an eventual breakout,” he explained.
Currently, Bitcoin is in a crucial phase where it needs to confirm an uptrend by establishing a higher low. Dan suggests that if Bitcoin pulls back, the best case scenario would be finding support above $95,000 before pushing higher to break through the $101,000 resistance. The overall goal for the bulls is to build support levels to solidify Bitcoin’s upward momentum and avoid retracing too much of its recent gains.
Dan believes that if Bitcoin confirms a “bull flag,” it could continue to climb toward new highs. However, Bitcoin’s performance isn’t the only story. Altcoins are seeing some excitement too, with XRP showing strong bullish potential. XRP recently bounced from a critical support level and is forming a weekly bull flag. While Bitcoin continues to dominate, altcoins are outperforming Bitcoin in the short term, and the drop in Bitcoin’s dominance is a sign of growing risk appetite in the broader crypto market.
Looking ahead, Dan warned that news events could affect market sentiment. The inauguration of the new administration could introduce volatility, and traders should be prepared for potential price swings. If Bitcoin surges rapidly in the days leading up to the event, a “sell the news” scenario could play out, where the price might retrace after initial bullish gains.
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