After a significant pullback this week and a bottom at $74,000, analysts suggest Bitcoin (BTC) is now poised to test former resistance levels around $80,600. According to technical analysis from market expert Tara, Bitcoin’s structure remains bullish, with technical indicators pointing to further upside despite the ongoing downtrend. She has identified potential price targets that could be reached if momentum continues, and outlined invalidation zones that traders should monitor closely.
Bitcoin To Test Key Resistance After Double Bottom
In a Monday X post, Tara noted that Bitcoin has formed a classic double bottom around $74,000, following last week’s significant price crash. She noted that the cryptocurrency is now retracing upward from that zone and steadily approaching its next resistance level.
Tara has said that the market is entering the final stages of its prolonged corrective cycle. As a result, she has outlined her expectations for BTC’s next moves, presenting both bullish and bearish scenarios depending on how the cryptocurrency’s price reacts to key resistance levels.
The analyst anticipates a three-step movement. First, Bitcoin is expected to climb toward the Wave A resistance level near $80,600 in the chart. Afterwhich, she expects the cryptocurrency to experience a minor retracement down to $77,600. Following this pullback, Tara believes BTC could see a bullish reversal and return above the $80,000 region. She has projected a surge toward the 0.382 macro Fibonacci level, which also approximately aligns with $83,700.
Tara’s projection does not stop there. She believes that after this initial climb to $83,700, BTC could experience one final pullback, targeting the macro 0.5 support level around $70,700. She identifies this area as the Wave 4 invalidation level and noted that it would be unsurprising for Bitcoin to test this new low as support before entering Wave 5.
Invalidation Levels And Wave 5 Expectations
When asked by a community member what Bitcoin’s next move could be if it drops further and invalidates Wave 4, Tara responded that even if Bitcoin targets Wave 2 lows, it will still find and hold support at $70,700. She added that the cryptocurrency would inevitably test the $100,000 level, which would be a defining moment for the cryptocurrency.
The analyst also shared her bullish target for Wave 5. She forecasted that once Bitcoin enters this final wave, it could skyrocket to $150,000. She added that if the cryptocurrency were to drop to the $70,700 support level, then the Wave 5 target would adjust slightly to $145,000, still marking a fresh all-time high for BTC.
As of now, Tara says Bitcoin is filling up support at every macro level. She noted that it has already filled the 0.236 and 0.382 Fibonacci support levels and is now targeting the final 0.5 Fib support. The analyst also emphasized that Bitcoin’s $150,000 Wave 5 target has not changed since the Wave 3 top, reinforcing the cryptocurrency’s long-term bullish outlook.
Featured image from Pixabay, chart from Tradingview.com
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