iShares Bitcoin Trust (IBIT) Price Forecast: Bullish Signals Emerge After Key Support Test

iShares Bitcoin Trust (IBIT) Price Forecast: Bullish Signals Emerge After Key Support Test

Key Points: IBIT found support near a major 88.6% Fibonacci retracement level. A five-week support base has led to improving bullish momentum. Weekly and daily breakouts suggest a potential trend reversal is developing. The $38.10 and $40.75 levels are key resistance tests ahead. A breakout above resistance could confirm a broader recovery phase.

Deep Support Zone Sets the Stage for Recovery Shares of iShares Bitcoin Trust (IBIT) have been showing signs of strengthening over the past couple of weeks, which suggests further upside. It reached a corrective low of $32.84 three weeks ago, thereby completing an 88.6% Fibonacci retracement of the prior advance. That would represent one of the deepest commonly watched Fibonacci retracement levels before a correction turns into a failure. In other words, it is a key price zone where support may be seen that leads to either a tradeable bounce or a long-term bottom and higher swing low.

IBIT daily chart shows strengthening momentum form bottom. Source: TradingView

Weekly Momentum Begins to Shift The support zone was confirmed over five weeks before renewed strength showed up and triggered a one-week bullish reversal of an inside week last week. An initial bullish continuation of that strength triggered today, Tuesday, with an advance to a high of $36.78, which was slightly above last week’s high of $36.66. Next up on the weekly chart would be the lower swing high of $38.10. A sustained advance above that level would trigger a bullish revers...