Bitcoin (BTC) Holds Strong, Returns to $104,000 Resistance Level

Bitcoin bulls are refusing to be deterred. A bearish chart pattern had formed going into Thursday, but in spite of a drop in price, a higher low was formed and now the bulls are back and pushing for the highs again. Better PPI data but Powell still concerned While Bitcoin perhaps readies itself for a breakout, the news in the US economy is still that uncertainty reigns. Although lower than expected PPI data was released on Thursday, adding to the general cooling of inflation that has continued to be experienced, a speech by Jerome Powell yesterday still carried very hawkish overtones. He warned of more frequent “supply shocks” caused by President Trump’s global tariffs, and that these would be likely to cause more volatile inflation. These comments by Federal Reserve Chairman Jerome Powell do not inspire confidence that interest rates will be lowered any time soon. It looks like Trump and Powell will be banging heads for some time to come. That said, at least in the US stock market, bullish sentiment is becoming very strong. The Fear and Greed Index is deeply in the Greed sector with a reading of 69. S&P 500 getting back to the highs Source: TradingView The S&P 500 is a sight to behold. From the terrible crash down below 5,000 points in the depths of the Trump global tariff impositions, the index has rallied just as quickly back to the upside. Currently back at 5,916 points, the S&P 500 does not have that far to go to make a new all-time high at 6,150, before potentially reentering the ascending channel. $BTC bullish setup on very short time frame Source: TradingView The 1-hour chart for $BTC depicts a bullish setup. A descending trendline drawn from the top of the $105,700 local high made on Monday kept the price below until early on Friday when a breakout occurred. The $104,440 resistance was touched before the price came back down. A confirmation of the breakout could be about to take place, which might also confirm the $103,700 resistance as support. If the breakout becomes a fakeout, as the price falls on through the trendline and the horizontal level, the bears could take the price back down to the $102,000 area. The trend is still up Source: TradingView Moving out slightly into the 4-hour time frame things do look more uncertain, at least as far as the bulls are concerned. The price has just now dipped under the descending trendline, so this would tend to favour the fakeout scenario, although there is still time for the price to reverse. It should be noted that the price action is making lower highs. This might correspond with higher lows, thereby forcing the price into an up or down decision sooner or later. Generally, the price action is traversing inside a range, which extends from $101,700 at the bottom, to $104,800 at the top. As long as the price does not make a lower low below $100,700 the trend is still up. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Source: Crypto Daily