Last week, Bitcoin made a new all-time high and gave bulls some serious profits. Price action has been looking solid and strong ever since it broke above the psychological and technical level of $110,000. But now, we’re starting to see signs that the market might need a healthy retracement.
On the daily chart, there’s a clear long wick at the top, which is a sign that buyers may be losing momentum up here. There’s also a Fair Value Gap (FVG) between roughly $115,200 and $112,200. In most cases, price tends to revisit these imbalances, so I wouldn’t be surprised if we dip back into that zone. I’m watching the midpoint around $113,700 because that could be a key level for a bounce if the bulls want to keep control.
If that zone fails to hold or we see a clean breakdown without much of a reaction, there’s a chance we revisit the $110,000 breakout level. From a Fibonacci standpoint, the 0.382 retracement of the recent move from around $98K to $120K also lands near $111.6K, which adds some confluence to that area.
Overall, I still think the trend is strong, but after this daily candle, I think that a 5–7% pullback wouldn’t be unusual or unhealthy. What are your thoughts? Are we just cooling off before another breakout, or is a deeper retracement on the table? Comments and suggestions?
On the daily chart, there’s a clear long wick at the top, which is a sign that buyers may be losing momentum up here. There’s also a Fair Value Gap (FVG) between roughly $115,200 and $112,200. In most cases, price tends to revisit these imbalances, so I wouldn’t be surprised if we dip back into that zone. I’m watching the midpoint around $113,700 because that could be a key level for a bounce if the bulls want to keep control.
If that zone fails to hold or we see a clean breakdown without much of a reaction, there’s a chance we revisit the $110,000 breakout level. From a Fibonacci standpoint, the 0.382 retracement of the recent move from around $98K to $120K also lands near $111.6K, which adds some confluence to that area.
Overall, I still think the trend is strong, but after this daily candle, I think that a 5–7% pullback wouldn’t be unusual or unhealthy. What are your thoughts? Are we just cooling off before another breakout, or is a deeper retracement on the table? Comments and suggestions?
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.