Bitcoin

BITCOIN Rebounded on a Double Support. Will it continue higher?

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Bitcoin (BTCUSD) experienced a sharp sell-off yesterday following the DeepSeek news but managed to recover more than 50% of the losses as it rebounded on the Double Support level.

The obvious level that catches your eye is the 4H MA200 (orange trend-line) which was tested for the first time in 12 days. The second is the Pivot trend-line, which was formerly a Lower Highs trend-line initiating from the December 17 2024 All Time High (ATH).

At the same time, it almost touched the bottom (Higher Lows trend-line) of January's Channel Up. Technically that is similar with December's Channel Up, which also had a Pivot trend-line test that delivered a rebound and a Higher High to the December 17 ATH.

As a result, if the price breaks above the 4H MA50 (blue trend-line), we expect a Higher High (new ATH), on a minimum 112000 estimate. If the price gets rejected on the 4H MA50 however, we expect a Double Bottom test of the 98000 level (or slightly below), similar to those of December 23 and January 13.

The reason that both scenarios are plausible is the fact that they both got their 4H RSI oversold (<30.00) and then rebounded.

The above show that even in the event of a 96000 Low, BTC is a buy even on the current levels, as once again we are closer to the technical bottom than the Cycle's Top. The technical upside remains enormous in 2025.

So which scenario do you think will prevail? Feel free to let us know in the comments section below!

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