Bitcoin is hovering near its all-time high, only about 5% away! After a huge rally, it’s taking a breather, consolidating its gains. The big question is: what’s next?
Bulls Still in Charge, But Uncertainty Remains
The price is holding strong above $100,000, showing bulls are still in control. However, opinions are divided. Some think this pause is just before a massive jump to even higher prices. Others predict a correction is coming, shaking out less confident investors before the next upward surge.
A Familiar Pattern?
Analyst Daan points out a pattern similar to what we saw after the April lows. A strong upward move was followed by consolidation, and then another leg up. He suggests watching the current price range closely and waiting for a clear breakout, either up or down, before making any moves. Don’t try to predict the market; react to what the chart shows.
Bitcoin’s Price Discovery: The $105,000 Hurdle
Bitcoin is close to entering “price discovery” mode – meaning the price could move significantly in either direction with little historical data to guide it. Bulls are aiming to break through $105,000 and challenge the all-time high near $109,000. A successful breakout could lead to a massive price increase. However, failing to break this resistance could mean a short-term price drop.
Technical Analysis: Consolidation and Key Levels
Bitcoin is currently consolidating just below the $105,000 resistance level. The price is around $103,820, a battleground for bulls and bears. The longer-term trend is still bullish, supported by key moving averages well below the current price. Trading volume has decreased recently, which is typical during consolidation. The tight range between $103,600 and $104,800 means a breakout either way could be dramatic. A break above $105,000 could push Bitcoin towards its all-time high. A failure to break through could lead to a drop back towards $100,000.