Bitcoin is showing a strong technical setup that could signal the start of a major rally. The 50-day exponential moving average (EMA) is on the verge of crossing above both the 100 EMA and the shorter 26 EMA. This alignment is often seen as a momentum-driven signal that can lead to significant price movements.
After recently breaking above the key resistance at $100,000, Bitcoin is now consolidating between $103,000 and $104,000. Market analysts suggest this pause could be temporary, allowing the asset to gather strength before making another upward push.
The structure indicates a base may have formed, supporting the case for continued gains.
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The 50 EMA serves as a dynamic indicator of midterm momentum. Its potential crossover above the 100 and 26 EMA highlights growing confidence among traders. When such a confluence forms during a period of consolidation, it often acts as a launchpad for the next leg up.
Bitcoin’s relative strength index (RSI) is at the moment remaining steady at 70. This level indicates high momentum but yet avoiding the overbought territory. Volume has been contracting slightly over the last few sessions which are normally the case following a breakout, in particular, when the market goes into a consolidation phase.
Key Technical Levels Support Bullish Continuation
Traders are closely watching the $102,000 level as a short-term support zone. A retest and sustenance above this level could form a high-conviction entry for bulls if Bitcoin manages to reclaim these levels.
In conjunction with the EMA crossover, this would provide congenial backing to the bullish case, drawing as much buying authority as possible.
The 50, 100 and the 200 EMAs are as well forming confluence bullishly indicating that the trend is still positive. Despite some whale activity and profit-taking, Bitcoin has remained strong within this range, highlighting strength in underlying demand.
Source: Tradingview
As the momentum is picking up and the main signals are lining up, Bitcoin seems ready for a possible surge on its way back to the all-time highs close to $109,000. The coming crossover may be the catalyst that fuels this next rally.
Bitcoin’s technical arrangement is becoming strong as the 5o EMA is not far away from an important crossover. In case support is maintained, the rally to $109,000 may soon resume.
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