Bitcoin's $96K Showdown: Calm Before the Storm

Bitcoin (BTC) Price: The Calm Before the Storm

Bitcoin (BTC) is currently maintaining a crucial horizontal support level of $96,000, with market participants eagerly awaiting the next significant price movement. The recent sideways price action may be a precursor to a substantial price shift, as the global political and macroeconomic environment remains uncertain.

Peace in Ukraine could potentially boost markets, with the possibility of a market boom lasting until the end of 2025. If the 4-year cycle for Bitcoin plays out as expected, the price could reach its peak in Q4 2022. The current depressed price action is normal, as the market absorbs the recent spike to $109,000. The price may now be poised for a further drop or a pivot back to the upside.

On the 4-hour chart, Bitcoin has broken out of a descending wedge but has been unable to gain significant momentum due to low trading volumes. The price is hovering above the wedge's upper trendline, with the important horizontal support at $96,000 holding firm. The Stochastic RSI has recently experienced a cross-up, indicating a potential bullish reversal. If the price continues to rise, the next resistance level is $100,000, which could signal a higher high and a reversal of the current local downtrend.

Looking at the weekly chart, the most important horizontal support and resistance levels are highlighted. The current weekly candle is filling the space between the $96,000 support and the $97,000 resistance. A candle close above $97,300 could signal a change in the local downtrend, while a close below $96,000 would keep the bears in control. The Stochastic RSI on the weekly chart is bottoming, and a cross-up of the blue indicator line over the red could indicate a significant upside price momentum is on its way.