Chart of the day

Where do we stand fundamentally?

Bitcoin has seen significant momentum recently, with prices pushing towards new highs due to a range of market factors. Following the recent U.S. election and expectations of a more favorable regulatory landscape, Bitcoin surged past the $80,000 mark and is on track for further gains. Market analysts are particularly eyeing the $11.8 billion options expiration set for the end of 2024, which could influence Bitcoin’s push toward a six-figure price.

Additionally, Bitcoin adoption continues to expand, with institutions like MicroStrategy making additional large purchases and reports of increased inflows into BlackRock’s Bitcoin ETF, marking heightened institutional interest.

Bitcoin is reaching an important resistance of 95000 which is the channel top and could be a fifth wave top. We need to see a breakout here for an upside extension to 100000 and possibly higher. I expect a deeper pullback here for a retest of 75000 previously broken strong upside resistance before a continuation higher.

We are in the development of the fourth wave short-term before a rally higher in the fifth short-term and the fifth long-term wave. Before an extension higher we could see a pullback from here in the short term. Invalidation of a swing lower will happen upon a confirmed break above 95000.

_{Try a short trade entry with a stop loss above 96000 to target 7500.}