"Bitcoin started last week out just below resistance, then blasted right on through it, with some very strong buying pressure throughout the week. The bulls are back in control after taking out all short-term resistance levels. Bitcoin price is now in what is referred to as a "blue sky breakout", where the price reaches a new all-time high and goes into price discovery mode as all buyers who didn't sell on the correction are now in profit."
"Using Fibonacci extensions from the recent pullbacks, however, we can see that $131,000 may act as a bit of a barrier if this breakout continues. Above there, we have some minor confluence at $135,000 and again at $140,000. If these levels are broken, we can look to the 2.618 Fibonacci extension from the 2021 high to 2022 low, resting at $155,000."
"If price pulls back from here, we will look down to the $118,000 level as support, with a good chance that level will be front-run by greedy buyers if we do see any significant dip back down. Closing a week below this level would open up $114,000 as the next support level, where the bullish trend could still resume if it held."
Bitcoin rallied past short-term resistance into a blue-sky breakout, producing a record weekly close at $123,515 and placing bulls in control. Fibonacci extensions indicate potential resistance around $131,000 with additional confluence at $135,000, $140,000 and a 2.618 extension near $155,000. Immediate support sits near $118,000, with $114,000 as a critical weekly support level that, if lost, would flip market structure bearish and target $105,000. A broadening wedge pattern is established on the daily chart and price recently tested the upper trend line resistance.
Read at Bitcoin Magazine
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