Bitcoin has had an exciting trading week, starting on Monday. I wrote in the Bitcoin consideration last weekendthat the key level on the downside is likely to remain at the $92,000 mark, a break below could provoke a small “Bitcoin mini-sell off” that could take the number 1 cryptocurrency based on market capitalization into the realms of around $80,000.
Bitcoin Cops don’t give up 🔴 Timely attacks on all-time highs continue to be an issue
► Bitcoin ISIN: XC000A2YY636 | WKN: A2YY63 | Ticker: BITCOIN
The overarching picture for Bitcoin
After a few moments of reflection on Saturday and Sunday, I wrote in mine Consideration on Bitcoin and Coinbase on Mondaythat I am becoming increasingly bearish for Bitcoin in the short term and that after the tentative bounce against the $91,000/92,000 region I can soon imagine a break lower – which actually happened on Monday. But instead of aggressive bearish momentum, there was a sharp reversal back above the $95,000 mark.
Bitcoin Chart Analysis – Daily
And when US core inflation was published on Wednesday at 3.4%, below expectations, fueling speculation that the US Federal Reserve might eventually become more expansive in terms of monetary policy over the year 2025, Bitcoin ran back above the $100,000 mark at the end of the week and on Friday at times over the $105,000 mark.
While I consider the mode to be a bit overextended in the short term from a technical point of view, I would monitor further price action very closely. In fact, I can now imagine a tight consolidation above $102,000 in the following days, followed by a breakout above $104,000 and then a dynamic drive targeting areas around the all-time highs around $108,000/109,000 (red box).
However, if we see a similar scenario to last Monday with a short spike above $105,000 and a subsequent drive back into the range between, say, $90,000 and $102,000, the short-term technical mode would remain neutral.
Bitcoin chart analysis – hourly
Bitcoin trading setups:
After the false breakout from the trading range established since the middle/end between (around) $90,000 on the downside and $102,000 on the upside, the retest of the upper range limit after the potential false breakout on Monday could provide Bitcoin with a timely opportunity for a bullish momentum play Long will be interesting with a break above $104,000, target in the area of the current all-time highs around $108,000.
Long setup:
As discussed above, after a consolidation above $102,000, Bitcoin should be considered for a momentum long trade in Bitcoin, whereby I wanted to see dynamic premiums at a break above the $104,000 mark with an initial target in areas around the current one All-time highs around $108,000.
Short setup:
Short trades are no longer an issue after the failed breakdown attempt below the $92,000 mark earlier in the trading week.
BITCOIN on the weekend, THE VIDEO, 01/18/25:
source: xStation5 from XTB
THIS IS WHAT WINNERS LOOK LIKE!
-
Stock trading + CFD Trading + ETF savings plans: EXCELLENT
-
Quality, service, fees & conditions – everything EXCELLENT at XTB!
-
The author (m/f/d) may be invested in the securities or underlying assets discussed.
The authors of the publications prepare this information at their own risk. Analyzes and opinions are not written with reference to the specific investment objectives and needs of any particular person. XTB publications that comment on specific situations in the financial markets as well as general statements made by XTB employees regarding the financial markets no advice of the customer by XTB and cannot be construed as such. XTB is not liable for any losses that arise directly or indirectly as a result of decisions made in relation to the content of the publications.
Past performance of trading assets is not a reliable indicator of future performance!
CFDs are complex instruments and involve a high risk of losing money quickly due to the leverage effect. 74% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Investment success and profits from the past do not guarantee success in the future. Contents, newsletters and communications from XTB do not constitute investment advice. The communications are as Promotional communication to understand.