Bitcoin Technical Analysis: 21 MAR 2025
Bitcoin squeezed higher after the wedge breakout. Source: TradingView
General View
Bitcoin has successfully broken out of a falling wedge pattern, signaling a shift in momentum as bulls take control. The price has climbed above the descending trendline resistance, showing early signs of strength. However, the market is now consolidating just above this breakout level, suggesting a potential retest before a continuation higher. A slow drop at this point is what bulls need to defend against, as it would negate the newly emerged momentum and risk pushing Bitcoin back into a range-bound phase. If buyers can sustain this breakout and defend support, a push toward higher resistance zones could be on the horizon.
On the Upside
After closing the CME gap, Bitcoin has observed increased profit-taking, which has dragged the price back lower. For the session, we have primary intra-day resistance at $84,500, followed by the $95,100 level. Bitcoin needs to reclaim these intra-day supports to be able to push back for $87,400 once again.
On the Downside,
Despite the breakout, Bitcoin remains vulnerable to a potential pullback if bulls fail to sustain the recent gains. The first key support lies around $82,200, followed by $81,500, near the broken wedge resistance. A deeper correction could see Bitcoin retesting the major support zone around the $80,200 to $79,950 levels.
Descending Chanelling Resistance remains the key to a longer-term bullish breakout. Source: TradingView
