Following a notable decline this week and hitting a low of $74,000, analysts are suggesting that Bitcoin (BTC) is now ready to challenge previous resistance levels around $80,600. Based on technical analysis from market analyst Tara, Bitcoin’s outlook remains optimistic, with technical indicators indicating further upward movement despite the ongoing downtrend. She has identified potential price targets that could be reached if momentum continues, as well as key levels that traders should keep a close eye on.
Bitcoin Poised to Test Resistance Levels After Double Bottom
In a recent analysis, Tara pointed out that Bitcoin has formed a classic double bottom pattern around $74,000 following a significant price drop last week. She observed that the cryptocurrency is now moving back up from that level and steadily approaching its next resistance point.
Tara noted that the market is entering the final stages of its corrective cycle. As a result, she has outlined her expectations for Bitcoin’s upcoming movements, presenting both bullish and bearish scenarios depending on how the price reacts to key resistance levels.
The analyst anticipates a three-step movement. First, Bitcoin is expected to rise towards the Wave A resistance level near $80,600 on the chart. Subsequently, she foresees a minor pullback to $77,600 before a potential bullish reversal back above $80,000. Tara projects a surge towards the 0.382 macro Fibonacci level, which aligns approximately with $83,700.
Tara’s analysis doesn’t end there. She believes that after reaching $83,700, Bitcoin could undergo a final pullback targeting the macro 0.5 support level around $70,700. She identifies this area as the Wave 4 invalidation level and suggests that Bitcoin may test this new low as support before entering Wave 5.
Invalidation Levels and Wave 5 Forecast
When questioned about Bitcoin’s next move if it drops further and invalidates Wave 4, Tara stated that even if Bitcoin revisits Wave 2 lows, it is likely to find and maintain support at $70,700. She mentioned that Bitcoin would inevitably aim for the $100,000 milestone, a significant moment for the cryptocurrency.
The analyst also shared her bullish target for Wave 5, forecasting that Bitcoin could potentially reach $150,000 once it enters this final wave. She added that if Bitcoin drops to the $70,700 support level, the Wave 5 target would adjust slightly to $145,000, still setting a new all-time high for BTC.
According to Tara, Bitcoin is currently finding support at various macro levels. She highlighted that the cryptocurrency has already tested and held the 0.236 and 0.382 Fibonacci support levels and is now aiming for the final 0.5 Fib support. The analyst emphasized that Bitcoin’s $150,000 Wave 5 target has remained consistent since the Wave 3 peak, reinforcing the positive long-term outlook for the cryptocurrency.
Featured image from Pixabay, chart from Tradingview.com
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