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After a big drop this week Analysts consider Bitcoin (BTC) is now poised to check previous resistance levels around $80,600. According to technical evaluation by market expert Tara, Bitcoin’s structure stays bullishTechnical indicators point to further upside despite the continuing bearish trend. It has identified potential price targets that may very well be reached if momentum continues and outlined invalidation zones that traders should watch closely.
Bitcoin tests key resistance after double bottom
In a Monday X post, Tara noted that Bitcoin has formed a classic double bottom around $74,000 after the numerous price drop last week. She noted that the cryptocurrency is now retreating upwards from this zone and is steadily approaching its next resistance level.
Tara said that the market is entering its final phase prolonged correction cycle. As a result, she has laid out her expectations for BTC's next moves, presenting each bullish and bearish scenarios depending on how the cryptocurrency's price responds to key resistance levels.
Source: Diagram of Tara on X
The analyst expects a three-stage movement. First, Bitcoin is anticipated to climb towards the wave A resistance level near $80,600 on the chart. After that, she expects the cryptocurrency to see a slight decline to $77,600. After this pullback, Tara believes that BTC could see a bullish reversal and achieve a return above the $80,000 region. It has predicted an increase towards the macro Fibonacci level of 0.382, which can also be roughly $83,700.
Tara's projection doesn't stop there. She believes that BTC could see a final decline after this initial rise to $83,700, with the macro support level at 0.5 at around $70,700. She identifies this area because the wave 4 invalidation level and noted that it might not be surprising for Bitcoin to check this latest low as support before entering wave 5.
Invalidation levels and expectations for wave 5
When asked by a community member what Bitcoin's next move may be if it continues to say no and invalidates wave 4, Tara replied Even if Bitcoin targets the Wave 2 lows, it’s going to still find and hold support at $70,700. She added that the cryptocurrency would inevitably do that Test the $100,000 markwhich can be a defining moment for cryptocurrency.
Also the analyst divided her bullish goal for wave 5. She predicted that when Bitcoin enters this final wave, it’s going to could rise to $150,000. She added that the wave 5 goal would adjust barely to $145,000 if the cryptocurrency falls to the support level of $70,700, which still represents a brand new all-time high for BTC.
From now on, Tara says Bitcoin is replenishing support at every macro level. She noted that the Fibonacci support levels of 0.236 and 0.382 have already been reached and the ultimate Fibonacci support of 0.5 is now being targeted. The analyst also highlighted that Bitcoin's goal of $150,000 in Wave 5 has not modified because the Wave 3 peak, reinforcing the cryptocurrency's goal long-term bullish outlook.
BTC is trading at $76,147 on the 1D chart | Source: BTCUSDT on Tradingview.com
Featured image from Pixabay, chart from Tradingview.com
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