Daily Trading Analysis: A Detailed Breakdown of Market Momentum BTC 17th JAN 2025
Overview of the session
The market saw significant price action today, starting with an immediate breakout above the $102.7K resistance level at the session's open. This bullish momentum pushed the price to a midday high of $105.2K before retracing to the 0.382 Fibonacci level. From there, the market made another push upward, reaching a session high of $105.7K before selling off in the latter part of the day.
By the close, the price retraced to the original breakout level ($102.7K), now acting as support. A hammer candlestick formed at this level, indicating that although sellers attempted to break below this support, buyers regained control, keeping the price above the critical threshold.
At the time of writing, the price is finding resistance around the $103.5K level, which has historically acted as a key barrier. A potential breakout above this level could pave the way for further upward momentum.
Key Takeaways from the 30-Minute Chart
Resistance Levels:
$103.5K: Current resistance that price is testing.
$105.2K and $105.7K: Previous highs reached during the session.
Support Levels:
$102.7K: The prior resistance level now acting as support.
$102K: A critical zone for bulls to defend on pullbacks.
Technical Indicators:
EMA Alignment: The 50 EMA ($103.3K) is above the 200 EMA ($100.5K), signaling a bullish trend.
RSI at 54.52: The market remains neutral, leaving room for potential upside.
30 minute chart
Daily Chart Perspective: A Major Breakout Day
The daily chart reflects a pivotal moment for the market:
Breakout from Key Resistance: The price surged past the critical $102K resistance level, backed by strong volume, confirming bullish momentum.
Trend Reversal: The breakout also invalidates the prior bearish trendline, signaling a shift in market structure to form a new higher high.
Neutral RSI: With the RSI at 63.76, the market has room to move higher without entering overbought territory.
Next Targets: Immediate resistance lies at $104.6K and $105.2K, with a potential upside to $108K if the bullish momentum continues.
Daily chart
Market Context: Preparing for the Week Ahead
This breakout comes at a critical juncture, leading into significant macroeconomic events, including Trump’s inauguration on Monday. The market’s ability to maintain support above $102K and potentially break through $103.5K will be essential for continued bullish momentum.
Trading Insights and Key Levels to Watch
Bullish Scenario:
A clean breakout above $103.5K could open the path to test $105.7K and $108K. Look for strong volume and candlestick confirmation for entries.Bearish Scenario:
If the price breaks below the $102.7K support, it could retrace further to test the $102K level, invalidating short-term bullish momentum.
