Bitcoin Gears Up for the Next Leg After $111K ATH — Long or Short? Here’s What to Know
The daily chart for Bitcoin continues to flash strength, with BTCUSDT pushing into a new price range supported by strong momentum and trend confirmation.
After a brief consolidation phase, the bulls have returned with confidence, marking higher closes and an aggressive incline that reflects increasing institutional interest and positive macro sentiment.
One of the clearest signs of bullish control is the behavior of the MACD histogram, which has flipped sharply positive after several days of indecision. This signals that the buying pressure is not only persistent but intensifying. The upward divergence between the MACD and its signal line suggests renewed acceleration in trend strength. Notably, this follows a brief period of consolidation where bulls successfully absorbed selling pressure without breaching key support levels.
Daily chart for BTC/USD (Source: GeckoTerminal)
The Relative Strength Index (RSI) now hovers in the mid-70s, placing Bitcoin firmly in overbought territory. While this typically signals the potential for a short-term pullback, in strong trending environments like this, RSI can remain overbought for extended periods. Instead of viewing it as a reversal signal, traders might interpret this as a sign of trend commitment, especially when confirmed by rising moving averages.
EMA Structure Confirms Uptrend Foundation
The 9-day EMA has convincingly crossed above the 20-day EMA, reinforcing the bullish structure and confirming that the recent rally is not a short-lived spike. The slope of both EMAs is steepening, which suggests that momentum is not only continuing but potentially accelerating. This formation often acts as a dynamic support zone during minor retracements, offering potential entries for trend-following strategies.
Traders should watch how Bitcoin reacts to this EMA zone on any future dip. Should Bitcoin revisit this area without significant bearish volume, it could serve as a launchpad for another leg up.
Key Levels to Watch
Despite the bullish tone, traders should stay aware of structural support levels in case of a short-term retracement. The zones around $96,593, $95,778, and $95,671 remain critical for bulls to defend. A bounce from any of these levels—especially if it coincides with the short-term EMA zone—could provide a high-probability re-entry for long positions.
Conversely, a clean breakdown below these support areas with follow-through volume would indicate a shift in sentiment, opening the door for short-term short opportunities targeting the lower range of consolidation.
Bitcoin Trading Strategy
For long-position traders, momentum continuation entries on minor pullbacks to the 9 or 20 EMA could offer favorable risk-reward setups. Breakout buyers may also look for a decisive candle above recent highs, supported by strong volume, to confirm upward continuation.
Short traders, meanwhile, may need to stay patient. While overbought RSI might be tempting, the current trend suggests that shorting prematurely could be risky. Instead, they might consider waiting for bearish MACD divergence or a clean break of the aforementioned support cluster before entering.
Conclusion
Bitcoin’s technical posture on the daily chart remains decidedly bullish, driven by strengthening momentum and solid trend confirmation. While some indicators hint at overextension, the broader setup supports the view that dips are likely to be bought—at least until structural support is broken. As always, risk management is key in fast-moving markets like this.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Ecoinimist is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
