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Is bitcoin poised for further gains following bullish chart pattern?
Bitcoin is rebounding from a hammer candlestick formation on the daily chart, with key resistance levels now in focus. A break higher could open up targets in the $110,000-$112,000 range.
Bitcoin technical analysis
Bitcoin is in the process of bouncing off Friday's hammer formation low on the daily candlestick chart.
A daily chart close above Friday's $106,207.38 high would confirm the bullish hammer formation and possibly lead to the December to January highs at $108,287.62 to $109,354.00 being reached. If overcome, the May and early June highs at $110,617.03 to $111,965.80 might be back in sight.
Technically speaking, bitcoin might have the $123,098 level as its next technical upside target. It is where the 261.8% Fibonacci retracement of the 2019 to 2021 advance, projected higher from the 2022 low, comes in.
Immediate support can be seen between the April-to-June uptrend line at $104,240.00, the 55-day simple moving average (SMA) at $103,021.44 and the 13 June low at $102,758.58.
Were the $102,758.58 low to give way, the 19 May low at $102,085.25 would represent the next downside target ahead of the more technically significant 5 June low at $100,043.75 and the psychological $100,000 region.
Bitcoin daily chart
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