- Bitcoin price posts a three-day winning streak, piercing key technical resistance to hit its weekly high.
- Inverse Head-and-Shoulders (H&S) pattern, along with upbeat momentum indicators, keep BTC buyers hopeful for $119K.
- Key EMAs add strength to the upside filters; Bitcoin pullback remains elusive beyond $104,600.
- Bitcoin recovery gains traction, but a road towards refreshing its ATH looks rocky.
Bitcoin (BTC) price flashes a ffour-day-high up 0.90% intraday near $113K early Tuesday, as technical formations enable bulls to aim for further upside amid a three-day winning streak.
BTC’s north-run gains support from a confirmed inverse Head-and-Shoulders (H&S) bullish chart formation, as well as mostly upbeat momentum indicators like the Moving Average Convergence and Divergence (MACD) and the Directional Movement Index (DMI).
Notably, the crypto major’s trading volume also rises for the fourth consecutive day, and the market capitalization hits a two-week high, to pique the buyer’s interest. According to Santiment, Bitcoin’s daily trading volume and the market cap rose to $42.56 billion and $2.24 trillion respectively.
Apart from that, the market’s dovish Federal Reserve (Fed) concerns and softer U.S. Dollar, as well as broad cautious optimism, also underpin BTC’s upside bias.
Still, multiple Exponential Moving Averages (EMA) and the market’s cautious mood ahead of this week’s top-tier data/events could slow the BTC’s potential rise.
Bitcoin Price: Four-Hour Chart Highlights Bullish Breakout
Bitcoin pierces the neckline of a two-week-old Head-and-Shoulders (H&S) bullish chart pattern on the four-hour timeframe. The upside break also gains support from bullish MACD signals and the DMI’s strong Upmove line (D+ in Blue), beyond the 25.00 neutral limit.
It’s worth noting, however, that the 200-bar EMA strengthens the $112,800 resistance, requiring a sustained upside break to confirm the theoretical run-up toward the $119,300 target.
During the anticipated rise, the late August swing high, surrounding $117,400, might offer an intermediate halt, whereas the $120K threshold and the previous monthly peak near $124,500 might lure the BTC bulls past $119,300.
Alternatively, Bitcoin’s pullback may aim for the weekend’s low near $109,900 before the monthly trough of $107,270.
Bitcoin Price: Daily Chart Points To Multiple Upside Hurdles
While the BTC’s four-hour chart cites open space between $112,800 and $119,300, multiple resistance levels stand tall to challenge buyers on the daily chart.
Among them, the 50-day EMA hurdle around the $113K guards the quote’s immediate upside ahead of the upper Bollinger Band (BB), close to $115,700.
Notably, the MACD remains bullish, and the DMI’s Upmove line (Blue) holds the top spot on the daily chart, indicating buying strength. However, the DMI’s Average Directional Index (ADX) in red sits well below the neutral 25 level, reflecting the need for a strong bullish catalyst to fuel the prices.
Hence, a daily closing beyond $113K becomes necessary for the BTC bulls to aim for the $115,700 hurdle, a break of which could allow buyers to target the $120K threshold.
In a case where Bitcoin remains firmer past $120K, a two-month-old horizontal resistance near $123,300 will be crucial for the buyers. Breaking above $123,300 could pave the way to revisit the all-time high around $124,500 and possibly approach the $130K psychological level.
On the flip side, the BTC’s failure to offer a daily closing beyond $113K highlights the middle BB of $111,484 as the short-term support.
Below that, an ascending support line from late April, close to $109,300, appears to be an important level to watch during the BTC’s further fall, before the lower BB support of $107,224.
Above all, the 200-day EMA near $104,680 becomes the final defense of the Bitcoin buyers, after which June’s low of $98,250 should grab the bear’s attention.
Conclusion
Bitcoin is on the cusp of confirming a bullish chart formation, backed by mostly upbeat momentum indicators. That said, the quote’s three-day uptrend also justifies the market’s cautious optimism and softer U.S. Dollar.
Still, the crypto major must provide a sustained breakout of a $113K resistance to direct buyers toward the $119,000 hurdle and beyond.
Overall, the BTC’s bullish bias regains momentum after snapping a three-week downtrend, reinforcing the broader upside outlook.
Also read: Cryptocurrency Weekly Price Prediction: BTC, XRP Rebound, But ETH Lags, amid Fed Rate Cut Buzz
