Bitcoin’s price surged 10% last week, hitting a three-month high of $105,500. But is this the start of a new all-time high (ATH) run, or just a temporary bump?
Hitting a Wall
After breaking the $100,000 mark for the first time since February, Bitcoin encountered resistance around $104,500. This key level is preventing further immediate price increases.
Analyst Predictions: A Second Chance?
One analyst, Rekt Capital, points out that Bitcoin has already experienced a price discovery uptrend and correction. The current situation represents an attempt at a second price discovery uptrend. For this to happen, Bitcoin needs to reclaim the $104,500 level as support. If it closes a day above $104,500 and holds that level, it confirms the uptrend. Otherwise, the resistance will likely continue to push the price down.
History Repeating Itself?
Rekt Capital notes similarities between Bitcoin’s current price action and its performance after the last halving. Following a similar pattern could mean a dip is possible. Specifically, Bitcoin might fall to the $97,000-$99,000 range, find support there, and then break through the $104,500 resistance.
The Potential Dip
According to the analyst, a 5% drop to around $98,500 is possible. However, this dip isn’t necessarily guaranteed. Bitcoin could just as easily close above the $104,500 resistance and continue its rally. A successful dip and subsequent recovery would solidify Bitcoin’s position and pave the way for a new ATH.
