Don’t look now, but bitcoin is already hovering around its May 2025 highs and might be looking to break higher soon.
How high can it go from here?
Check out these nearby inflection points I’m watching on the 4-hour time frame:
Bitcoin (BTC/USD) 4-hour Forex Chart by TradingView
BTC/USD recently busted out of a descending trend channel to suggest that a reversal from the earlier downtrend is in order. However, the rally is stalling at the record highs around $112K, possibly spurring a correction.
Can bitcoin find support at these Fibonacci retracement levels?
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your fundie homework on bitcoin and the U.S. dollar, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
Profit-taking at R1 ($111,483) and the May 2025 highs could spur a pullback to the pivot point level ($108,302) or the 38.2% Fibonacci retracement level near the broken channel top and dynamic support at the moving averages.
A larger correction could reach the 50% Fib at $105,144 or the 61.8% level near the mid-channel area of interest, which could still attract more bitcoin bulls to sustain the climb. If this happens, BTC/USD could set its sights back on the swing high or higher, potentially aiming for next upside targets at R2 ($113,734) then R3 ($116,910) net.
Just be sure to pay attention to global market developments, particularly tariffs headlines and geopolitical updates, that could impact overall risk sentiment, USD direction and crypto trends.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment.
Disclaimer:
Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
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