Bitcoin Targets $110K as Bullish Momentum Resumes After Key Retracement

BTCUSD Market Analysis – May 21

BTC has regained bullish momentum after completing a major retracement, positioning Bitcoin for a potential breakout above key resistance levels.

Bitcoin (BTCUSD) Key Levels

‎Support Levels: $75,200.00, $59,700.00
‎Resistance Levels: $88,600.00, $110,200.00‎

BTCUSD Long-Term Outlook: Bullish

‎Bitcoin remains firmly in a bullish trajectory following the completion of a major retracement. A significant low was established in August 2024, which marked the beginning of a strong upward movement. This bullish swing drove the price to a peak around $110,200 before a notable pullback occurred, initiated by a double-top formation.
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‎Despite the depth of the correction, the retracement respected the 0.5 Fibonacci level and found strong demand support around $75,200. These confluences reinforced the probability of a continued uptrend. As bullish momentum regained strength, Bitcoin broke through the $88,600 resistance level and resumed its climb toward the $110,200 mark.
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‎However, the daily Relative Strength Index (RSI) signals overbought conditions, with early signs of bearish divergence emerging. While a short-term correction may follow, the prevailing momentum suggests that Bitcoin is likely to breach the $110,200 resistance before any significant downside movement materializes.

‎B‎TCUSD Medium-Term Outlook: Bullish

‎‎On the 4-hour chart, the bullish structure is more pronounced, with price action consistently respecting a rising trendline. The recent bounce from this trendline has triggered a fresh upward leg, reinforcing the likelihood of another attempt at the $110,200 target.
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‎Supporting this outlook, the 4-hour Moving Average confirms bullish crypto signal as the price remains above it. However, the 4-hour RSI is also in overbought territory, indicating that a minor pullback may occur before price makes a decisive move toward the key resistance level.

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