Bitcoin Price Analysis: Potential Upside Amid Key Resistance Levels

According to Cointelegraph, Bitcoin is currently finding support at $107,245, reflecting positive investor sentiment as minor dips are consistently purchased. The cryptocurrency is attempting to rebound from its moving averages, suggesting buying interest during price declines. Despite trading just below its all-time high of $111,980, Bitcoin is not yet considered overvalued. CryptoQuant contributor Axel Adler Jr. noted that the Mayer Multiple stands at 1.1x, which is within the neutral zone of 0.8 to 1.5x. Bitcoin's price is currently squeezed between the 20-day exponential moving average at $107,314 and the overhead resistance at $110,530. The upward slope of the 20-day EMA and the relative strength index in the positive zone indicate a potential upward breakout. If Bitcoin surpasses the $110,530 resistance, it could challenge its all-time high of $111,980 and subsequently test the neckline of the inverse head-and-shoulders pattern. Sellers are anticipated to strongly defend this neckline, as a break above it would complete a bullish setup, potentially leading to a rally toward the pattern target of $150,000. However, this optimistic outlook could be invalidated if the price declines and breaks below the 50-day simple moving average at $106,642. Such a move might prompt short-term buyers to secure profits, causing the pair to drop to $104,500 and then to $100,000. On the 4-hour chart, Bitcoin is finding support at $107,245, indicating that every minor dip is being purchased. If buyers manage to push the price above the downtrend line, the developing descending channel pattern will be invalidated, increasing the likelihood of a breakout above $110,530. Should this occur, the pair may rise to $111,980 and subsequently to $113,500. Conversely, the bearish setup will be confirmed if the price turns downward and breaks below $107,245, potentially sinking the pair to the pattern target of $103,960. It is important to note that this article does not provide investment advice or recommendations. Every investment and trading decision involves risk, and readers are encouraged to conduct their own research before making any decisions.