Bitcoin Price Analysis: Will BTC Break $110,000 or Face a Strong Pullback?
Bitcoin’s price recently achieved a record high weekly close above $107,000, signaling a potential path towards a new all-time high (ATH). However, the bears have increased their activity, causing the price levels to dip below the previous day’s open range, raising concerns about the future price action. The liquidity range for BTC is currently at a crucial juncture, with a fierce battle between bulls and bears expected to determine dominance in the coming days.
Following a rebound from local lows, whales and bulls have become more optimistic about Bitcoin’s future. This optimism led to an increase in long trades with significant leverage, boosting the overall sentiment among retail traders and driving the price rally to near all-time highs. However, profit-taking by whales has contributed to the recent downturn in BTC price.
One notable example is a Hyperliquid whale who recently cashed out $10 million in profits from a 40x long trade on Bitcoin within 24 hours. Despite this, the whale still holds a substantial $337 million long position on BTC, indicating strong conviction. The question now is whether the Bitcoin bull run has further room to grow or if it’s time for a market exit.
On the daily chart, Bitcoin remains under bullish influence despite bearish pressure. The price recently faced rejection before reaching the final resistance zone below the ATH, suggesting a potential correction before a new high is set. The On-Balance Volume indicator has been declining, signaling reduced buying activity and increased sell-offs. However, moving average (MA) levels provide some optimism, with a potential Golden Cross on the horizon.
The 50/200-day MA is on track for a bullish crossover, typically triggering a significant uptrend. The upcoming monthly close could have a substantial impact on the next rally, with a successful Golden Cross potentially pushing the BTC price above $110,000. On the other hand, a failure could lead to a strong pullback and an extended correction phase for the leading cryptocurrency.
In conclusion, Bitcoin’s price is at a critical juncture, with a potential breakout above $110,000 on the horizon. Traders and investors should closely monitor key indicators and market sentiment to navigate the current market conditions effectively.