‎Bitcoin Expects Bullish Continuation Despite Overbought Signals

‎BTCUSD Market Analysis- October 2

‎Bitcoin continues to demonstrate a strong bullish trajectory, with price action signaling resilience despite facing resistance and short-term overbought conditions.

‎‎Bitcoin (BTCUSD) Key Levels

‎Support Levels: $110,900.00, $104,800.00
‎Resistance Levels: $118,600.00, $123,800.00

‎BTCUSD Long-Term Trend: Bullish

‎Bitcoin’s long-term bullish structure was reinforced in early July 2025 when price breached the $118,600 level, advancing toward the $123,800 supply zone. However, repeated tests of the $123,800 level led to rejection, sparking bearish momentum.
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‎This decline pushed price back below the $118,600 supply zone and ultimately beneath the $111,900 demand level, activating the daily order block. Initial reactions saw buyers defend the order block, but sellers quickly reasserted pressure at $118,600, attempting to invalidate the bullish structure.
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‎Nonetheless, the emergence of a failed-low pattern preserved the integrity of the order block, sustaining the broader bullish outlook. The daily Relative Strength Index (RSI) now sits in the overbought region, suggesting caution. This signals a potential short-term pullback or consolidation phase before renewed upward momentum.

‎BTCUSD Medium-Term Trend: Bullish

‎On the 4-hour timeframe, Bitcoin displays a reverse head and shoulders formation, reinforcing bullish sentiment and aligning with the daily order block. Price is currently retesting the $118,600 level, with strong prospects of breaking above it decisively this time.
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‎Although the 4-hour RSI also shows overbought conditions, rather than signaling a sharp reversal, a period of consolidation is more likely. Following this minor pause, bullish continuation is anticipated, with targets extending above the $123,800 resistance region.

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