Bitcoin bulls push price to $104,000 despite economic uncertainty

Bitcoin bulls have shown resilience, pushing the cryptocurrency back to the $104,000 resistance level despite a bearish chart pattern that formed earlier in the week. The price of Bitcoin dipped but managed to form a higher low, indicating that the bulls are regaining control and aiming for new highs.

While Bitcoin is poised for a potential breakout, the broader economic landscape remains uncertain. Lower-than-expected Producer Price Index (PPI) data released on Thursday suggested a continued cooling of inflation. However, Federal Reserve Chairman Jerome Powell's recent speech carried hawkish tones, warning of potential supply shocks due to global tariffs, which could lead to more volatile inflation. Powell's comments suggest that interest rate cuts may not be imminent, as the Fed remains cautious about the economic outlook.

Despite the economic uncertainties, bullish sentiment in the US stock market is strong. The Fear and Greed Index is deeply in the Greed sector, indicating a high level of optimism among investors. The S&P 500 index has rallied back to 5,916 points, nearing its all-time high of 6,150 points, and is poised to reenter an ascending channel.

On a very short time frame, the 1-hour chart for Bitcoin shows a bullish setup. A descending trendline drawn from the $105,700 local high on Monday kept the price below until early Friday, when a breakout occurred. The price touched the $104,440 resistance before retreating slightly. A confirmation of this breakout could also confirm the $103,700 resistance as support. However, if the breakout turns out to be a fakeout, the price could fall back to the $102,000 area.

Looking at the 4-hour time frame, the price action appears more uncertain. The price has dipped below the descending trendline, favoring the fakeout scenario. However, there is still time for the price to reverse. The price action is making lower highs, which could correspond with higher lows, forcing the price into an up or down decision. Generally, the price is moving within a range from $101,700 to $104,800. As long as the price does not make a lower low below $100,700, the overall trend remains upward.