As could be expected, Bitcoin is and will continue to be the best cryptocurrency on the market. Its scarcity, security, decentralization, transparency, and global acceptance as a store of value are the characteristics that allow it to be a fundamental pillar in the crypto world today. To learn more about Bitcoin, let’s analyze its chart in depth. Are you joining us?
Bitcoin Chart
Right now, Bitcoin is trading at around $108,000 — that’s a rise of over 600% since the lows at the end of 2022.
Pretty incredible, right? What do you think is driving this?
If we take a look at the weekly chart, you’ll see that the price has been in a long-term uptrend for years, consistently forming higher highs and higher lows.
That said, over the past week and the one before, we’ve seen an incredible surge — breaking through all-time highs once again.
Technical Analysis of Bitcoin
To perform a technical analysis of Bitcoin, it is essential to read the charts and their context well such as the trend of the chart, the patterns of entry and exit, the supports and resistances, etc. Therefore, let’s analyze all the technical indicators that today’s Bitcoin chart displays.
1- Supports and Resistances
The difference between support and resistance is minimal—they’re essentially the same concept, just positioned differently:
- Support levels are below the price and act as a floor where buyers step in.
- Resistance levels are above the price and serve as a ceiling where sellers tend to take profits.
Where are these levels on Bitcoin’s chart?
As you can see, Bitcoin was in a strong downtrend, and the $17,000 zone helped it slow down a bit.
After breaking that support, it faked out and came back inside the range, kicking off the current uptrend we’re seeing.
This entire bullish trend has given buyers the momentum they needed to push the price all the way up to new all-time highs at $111,990.
It’s also important to highlight the two reaccumulation zones along the way — they played a key role in helping the price gather strength to keep moving higher.
Now, after breaking the December highs, the trend has held and the price moved sideways for several months, followed by a significant drop that pushed it out of that consolidation zone and briefly found support around $80,000.
Currently, the bounce looks strong and has led to a breakout above the key psychological level of $100,000.
2- Where to Enter and Exit
It is not easy to place your entry price, exit price, or even the stop loss correctly. If you intended to exit the operation manually, you can forget that idea. It will not benefit you at all. Knowing when to enter a trading operation is important, but it is much more important to know how to exit correctly.
So, let’s go. Let’s mark our key points:
You need to figure out what kind of investor you are.
If you’re in it for the long haul (a holder), you’d likely wait for price to hit support zones to accumulate more. You wouldn’t worry too much about short-term price swings.
But if you’re more of a swing trader, you need to be very clear on where you’re entering, where your stop loss is, and what risk you’re taking.
In both cases, you could take advantage of the setup shown on the chart:
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If you’re a holder, now could be a solid area to accumulate more BTC, especially if price takes a breather here. You could also wait and see if it drops back to $90,000. And of course, as with anything in crypto, there’s always a small chance we revisit the $70,000 area—even if it’s less likely.
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If you’re a swing trader, one option could be to look for a breakout and pullback around the $107,000 level, and aim to catch the next leg up from there.
3- Weekly Moving Average
Today, we can (and should) adjust our technical indicators to assist us. The weekly moving average, although poorly configured, will not lead us to major disasters. Anyway, we have configured it to mark significant differences in terms of precision and utility. The blue line indicates bullish moments, while the red, draws the bearish ones. Let’s see what happens in this case.
4- Divergences
When a divergence occurs, something smells bad, something is wrong, because the price and something derived from the price do not match. If you want to know how to read an indicator when looking for divergences, click here. Now, let’s start detecting those contradictions between the price movement and a technical indicator on the Bitcoin chart.
MACD
There are few occasions when significant divergences of MACD appear on weekly charts. However, when they do appear, caution is necessary because significant changes are coming. Let’s analyze the Bitcoin chart. At first glance, what do you detect? Tell me. 😉
MACD had been trending down for several weeks, and the price finally followed. Now, with this recent surge, MACD has started to react and is moving in sync with the price.
This could be a signal that the upward trend might continue.
RSI
The RSI moves between 0 to 100 and indicates whether the price is expensive or cheap. Two things could happen:
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- The price is very high and there is an overbought situation (levels above 70).
- The price is below 30 (oversold or very low).
Right now, the price is climbing strongly, and RSI had been hinting at weakness followed by a possible move up in the past few weeks.
Keep in mind that RSI, being an oscillator, tends to be quicker than other indicators when it comes to spotting changes or signaling overbought or oversold conditions.
At this point, it’s moving in line with the price, so we’re not seeing any divergence.
The triangles in trading form an important part of technical analysis with cryptocurrencies. There are different types of triangles. We have the ascending triangle, the descending triangle, and the symmetrical one. Which one appears in the Bitcoin chart?
For now, we don’t have more compression in the form of triangles, and the price continues a strong rise without many stops.
5- Volatility
Volatility is usually a sign that the price is accelerating in one direction. To know the volatility that Bitcoin currently has, we will look at the Japanese candles. Remember, the interpretation of Japanese candles in trading is a matter of common sense.
The larger candles represent fast price movements. The smaller ones show the opposite: quieter areas.
On the daily chart, I’ve marked (with orange circles) the recent periods where Bitcoin has shown high volatility. As you can see, over the past few weeks, we’ve seen increasing volatility pushing the price up to where we are now—almost $111,000.
This price explosion clearly lines up with several strong bullish candles, likely driven by institutional buying. So far, there are no signs of significant selling pressure from the big players.
Forecast with Bitcoin
If you’ve made it this far, it’s because you already know what this is about. You are clear about what Bitcoin is, but you want to know what will happen with it. We will tell you what could happen from now on. However, we do not promise that it will happen. This is what we deduce from the different patterns, but it is not 100% reliable.
The monthly chart is clearly bullish, and the weekly chart still shows a strong uptrend. The key now is for the price to continue climbing with momentum and decisively break through the $111,990 level.
Right now, there’s a lot of hype and FOMO kicking off 2025, as crypto gains more mainstream attention. Bitcoin is making history, breaking through the major psychological barrier of $100,000. This is a major milestone in the evolution of the asset.
From here, we could definitely see more upside—as long as the momentum holds and the support zones don’t break. But remember, a lot depends on what the big players do.
Personally, with all the current FOMO and rising adoption—especially with Trump now backing crypto—it’s very likely we’ll see further upward movement.
That said, if price sharply corrects and drops below $107,000, we might be looking at a deeper pullback.
So, what would you do? Would you buy now, or wait for a solid correction to get in?
If you liked this analysis, I leave you here the analysis and prediction of Ethereum.
Trading with Bitcoin
As you know, trading with Bitcoin is very delicate. Buying and selling, taking advantage of price changes is not a game. You need to be trained to do it effectively and profitably. Anything else will only lead to losing time and money. Don’t you want that? We must enjoy every day as if it were the last, don’t you think?
Don’t procrastinate. If you want to learn how to do it right, practice with us, and remember to store Bitcoin in the world’s safest wallet, Material Bitcoin. 😎 And, of course, don’t forget to keep observing the Bitcoin chart with us. The more you practice, the better you’ll do. However, do not buy just because the price reaches support, always wait for it to confirm the stop.
If you have doubts or questions, join our telegram channel!
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