Bitcoin (BTC) price started a fresh increase from the $98,500 zone. BTC is now back above the 50-day SMA and might soon aim for a 10% increase.
Bitcoin Price Eyes Upside Break and Surge
After struggling to settle above the $110,000 zone, Bitcoin price saw a sharp decline. There was a drop below the $105,000 and $103,500 support levels. The price even dived below the $102,000 level and the 50-day simple moving average (blue).
Finally, there was a spike below $100,000. A low was formed at $98,579, and BTC started a fresh increase after Trump announced a ceasefire. The price recovered losses and traded above the $103,500 pivot level. There was a clear move above the 50% Fib retracement level of the downward move from the $110,680 swing high to the $98,579 low.
Bitcoin price is now back above the $105,000 resistance and the 50-day simple moving average (blue). The last three daily candles suggest the bulls are back and might aim for more gains in the near term.
More importantly, there seems to be a bullish flag pattern forming with resistance at $108,800 on the daily chart. If the bulls remain active above the $105,000 zone, they could attempt a fresh increase. On the upside, immediate resistance is near the $108,000 level. The first major resistance is near the $108,800 level and the flag’s trend line.
A close above the $108,800 resistance might spark more upsides. In the stated case, the price could attempt a move toward the $113,500 level. The next stop BTC price could be the $115,000 level, above which the price could rise toward the $118,000 level or the 1.618 Fib extension level of the downward move from the $110,680 swing high to the $98,579 low. Any more gains might call for a test of $120,000.
Another Pullback In BTC?
If Bitcoin bulls fail to push the price above $108,800, there could be a bearish reaction. Immediate support is near the $106,000 level and the 50-day simple moving average (blue).
A downside break and close below the $106,000 support might spark more losses and send the price further lower. In the stated case, Bitcoin could test the $103,500 support. The next key support could be $101,500.
If the bulls fail to protect the $101,500 zone, the price could start a major decline. In the stated case, the price could test the $98,500 support. Any more losses might call for the test of the $95,000 support.
Overall, Bitcoin is showing positive signs above the $106,000 level and the 50-day simple moving average (blue). A convincing close above the $108,800 level could initiate a strong surge and the price could rally to $118,000.