Bitcoin is demonstrating renewed strength, having recaptured a crucial technical level that historically signals the start of short-term rallies.
According to a June 25th analysis by CryptoQuant contributor ฤฐbrahim COลAR, Bitcoin has successfully moved back above its 50-day exponential moving average (EMA), a trend line widely used to identify major shifts in market momentum.
In the past, Bitcoin’s price has often surged by 10% to 20% after dipping below the 50-day EMA during a correction and then swiftly rebounding above it. This pattern appears to be repeating. Bitcoin has now closed above the 50-day EMA for three consecutive days after briefly falling below it, suggesting a potential resurgence of bullish control.
COลAR believes this could pave the way for a short-term move towards $120,000. However, he cautions that geopolitical events involving the United States, Israel, and Iran could introduce unexpected volatility.
At the time of writing, Bitcoin is trading at approximately $106,720, a 1.4% increase in the last 24 hours. This represents a 7.8% recovery from its June 22nd low of $98,974, which occurred amidst market sell-offs triggered by escalating Middle East tensions.
Some analysts argue that geopolitical unrest may ultimately strengthen Bitcoin’s long-term appeal as a hedge against uncertainty. War and inflation risks often lead to increased government spending and easing of monetary policy โ conditions that historically favor Bitcoin.
Despite ongoing conflicts, investor interest in Bitcoin remains robust. Spot Bitcoin exchange-traded funds (ETFs) have experienced consistent inflows for the eleventh consecutive day. Data from SoSoValue indicates that total net inflows in the past week have reached $938 million, demonstrating continued investor confidence.
Technical Analysis: Key Levels to Watch
From a technical standpoint, Bitcoin is approaching the upper resistance band around $110,100 after breaching the 50-day EMA. If Bitcoin can consolidate above the $105,700 – $106,000 range, this would indicate growing bullish momentum.
- Relative Strength Index (RSI): At 54.69, the RSI is slightly above neutral, suggesting improving momentum without yet being overbought.
- Moving Averages: Shorter-term moving averages are flashing “buy” signals.
- MACD (Moving Average Convergence Divergence): The MACD has entered a bullish signal zone.
Key Levels for Bulls: To sustain upside momentum, bulls need to push Bitcoin above the $108,000 – $110,000 resistance level. A daily close above $110,000 could unlock the $114,000 – $120,000 target range.
Key Support Levels: If momentum wanes, support lies at $105,000. Stronger buying interest could emerge near $102,000 or $98,900.
Color cues (If your platform supports it):
- ๐: Indicates excitement or a key point.
- $120,000: A price target (can be styled with color to highlight).
- 50-day EMA: Important technical indicator.
- $105,700 – $106,000, $108,000 – $110,000, $114,000 – $120,000, $105,000, $102,000, $98,900: Important price levels to watch.
Example of color application (using HTML-style color tags, works in some renderers):
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Technical Analysis: Key Levels to Watch
From a technical standpoint, Bitcoin is approaching the upper resistance band around $110,100 after breaching the 50-day EMA. If Bitcoin can consolidate above the $105,700 – $106,000 range, this would indicate growing bullish momentum.
