Bitcoin’s Promising Trajectory: Could a New All-Time High Be on the Horizon?
As Bitcoin (BTC) lingers just below the pivotal $105,000 mark, a seasoned analyst has uncovered a historical trend that might soon propel this leading cryptocurrency to unprecedented heights. The coming weeks could see Bitcoin breaking through its previous all-time high if this pattern holds.
A Consistent Ascent Since April
Since its downturn at the beginning of April, Bitcoin has demonstrated a remarkable upward trajectory, moving in a distinct $10,000 increment pattern. This steady climb saw Bitcoin first surpass the $74,000 threshold, followed by $84,000, then $94,000, and now it is consolidating around the $104,000 mark. Each level has been rigorously tested and successfully breached, creating a strong upward channel.
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The Ascending Channel and Potential Milestones
Prominent crypto analyst, TradingShot, highlighted in a TradingView post on May 16 that Bitcoin is currently navigating within an ascending channel, which indicates further potential gains. If this channel remains intact, Bitcoin’s next targets could be $114,000, $124,000, and eventually reaching an ambitious $134,000. TradingShot anticipates these milestones could be achieved by late June or early July.
However, this bullish outlook is not without its challenges. A fall below the channel’s lower boundary could lead to a significant correction, with Bitcoin potentially revisiting support levels around $94,000 or even $84,000.
Bitcoin’s Path to $120,000
Adding to the optimistic sentiment, analyst Ali Martinez shared in a May 17 post that Bitcoin might aim for a new peak near $120,000, as long as it retains support above the crucial $90,000 mark. Martinez’s analysis leverages the “Cumulative Value Days Destroyed” (CVDD) indicator, suggesting Bitcoin is in a robust accumulation phase. Historically, this metric has been instrumental in identifying market peaks and troughs, with current trends pointing toward a possible peak around $120,000.
The CVDD currently stands at $34,153, with major resistance noted at $124,088. Support is firmly rooted at $90,000, aligning with significant psychological and technical levels.
Current Market Dynamics
Currently, Bitcoin is oscillating between $104,000 and $105,000. Analysts speculate that the cryptocurrency might be consolidating within a bullish flag pattern, a continuation formation after its remarkable rally from $74,400 to $105,900. This surge was driven by margin liquidations and robust spot demand, bolstered by substantial inflows into Bitcoin ETFs.
Bitcoin Price Analysis
As of the latest update, Bitcoin is trading at $102,977, experiencing a slight dip of approximately 0.6% both on daily and weekly charts. Despite this, Bitcoin is comfortably above its 50-day simple moving average (SMA) of $90,993 and its 200-day SMA of $86,134, underscoring its strong bullish momentum. The disparity between the current price and these moving averages suggests that Bitcoin’s upward trend is still intact, even if a short-term retracement occurs.
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