4 min readFor today’s update on Bitcoin, we are seeing that price may be forming a potential lower high on the daily time frame, marked with a number one on the chart. At the same time, Bitcoin is holding the local 50 percent retracement level, with the reload zone sitting below, aligned with the previous all-time high breakout area where we also find the white 20-day EMA.
Looking at the indicators at the bottom, we have the MACD histogram at the top and the RSI below. During this recent uptrend, a bearish divergence has formed, with the indicators printing a downtrend while price continues to trend upwards. This may serve as an early clue of weakening momentum and potential loss of trend strength.
For the current bullish structure to remain valid, Bitcoin needs to hold the 105,000 to 106,000 support zone and avoid printing lower lows on the daily chart. If this lower high does confirm, it could be the first indication of a deeper retracement and a possible shift into a daily downtrend.
Dropping into the 4-hour chart, Bitcoin is currently trading within a well-defined range. The range low sits around 107,000, range EQ (mid-range) around 109,500, and the range high is aligned with the previous all-time high area around 112,000.
These are clearly defined levels that can help with intraday risk management and also serve as reference points for larger directional moves. A confirmed break below the range low could set the stage for a more significant pullback and the potential breakdown of the bullish daily structure. On the other hand, a reclaim of range EQ and a push towards the range highs could suggest continuation and open up the possibility of entering price discovery once again.
These are the key levels we’re watching right now, and we will continue to monitor and update you in future daily reports.
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