Bitcoin continued to break through and reached a new historical high last night, with the highest price exceeding 108,000. However, from the above chart, we can also see that after Bitcoin broke through this new historical high, there was a significant pullback. It nearly retraced to the Bitcoin price we were bullish on during our analysis yesterday.ResistanceThis is around the support level of approximately 105,500, and after a small rebound, Bitcoin's price continued to decline, breaking this support level today in the morning. Currently, the price of Bitcoin is still in the process of pulling back and declining. From the chart above, we can also see that Bitcoin first broke through the upward trendlines and then broke through the support level. Given the situation, the subsequent pullback may continue.
The break of the trendlines means that the upward structure will be temporarily disrupted, although we are looking at a short-term upward structure. There are also higher-level trendlines providing support at larger scales. For example, in the four-hour chart above, the trendlines have not fallen yet, and we also need to pay attention to the current support level below. I personally believe that the current support level should be around 103,500. From the above chart, it is clear that this was a previous breakout that reached a key historical high, and the price showed a slight decline at this location right after the breakout.
Therefore, I think we should watch to see if this level can hold. If the price holds at this level, there may still be opportunities to look for short-term entry. The clear sign of holding will be a trend rebound appearing on the four-hour chart.Bullish line.. If it continues to declineBearish line.If the decline continues to break below this level, then the Trendlines' Resistance will need to be observed. If the Trendlines are broken and continue to show bearish candles, a larger correction may occur.
