Bitcoin Bulls on the Rise
The cryptocurrency market is buzzing with excitement as Bitcoin (BTC) tests the critical $98,000 resistance level. This comes just before the important US economic data releases, including CPI and PPI figures.
Understanding Market Trends
With Bitcoin showing signs of strong bullish momentum, traders should be aware of the 'Golden Cross' formation, where the 50-day moving average crosses above the 200-day moving average. This is a significant long-term bullish signal. Moreover, the MACD's bullish crossover suggests that upward momentum may continue.
Key Levels to Watch
The current Relative Strength Index (RSI) stands at 72, indicating overbought conditions. Traders need to exercise caution here as short-term pullbacks may occur, but in bullish markets, assets can remain overbought for longer.
Watch for resistance levels at $100,685 and $110,675. A breakout above the latter could push BTC towards $116,205. On the downside, key support levels are at $88,605 and $83,605.
Trading Strategies
Given the market conditions, consider entering long positions with tight stop-losses below $95,000. Target profits could be set around the psychological level of $100,000. For a more cautious approach, wait for a confirmed breakout above $100,685 before entering long positions.
Altcoin Opportunities
Ethereum (ETH) is also showing potential. Currently trading at $4,800, a retest of the $4,620 support level could provide an excellent entry point, targeting resistance at $5,000.
Conclusion
As always, maintain proper risk management and position sizing, especially as we approach key economic data releases which can add volatility to the markets. Stay informed and trade wisely!
