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Bitcoin’s price has once again broken above the $100K level, and investors are wondering whether it can keep above this time around, especially after bouncing off the plunge below $90,000 on Monday.
Technical Analysis
By Edris Derakhshi (TradingRage)
The Daily Chart
On the daily chart, the asset has been struggling to rise above the $100K level over the past few weeks. However, the market is now testing the six-digit territory and is trying to stay above it and rally toward a new all-time high.
If the cryptocurrency closes above this level, it is very likely to trend higher in the coming months and potentially reach the $120K mark.
The 4-Hour Chart
Looking at the 4-hour chart, the market has been consolidating inside a large falling wedge pattern, testing the higher and lower boundaries on multiple occasions. Yet, the asset has finally broken the higher trendline to the upside. Based on classical price action, the cryptocurrency is now expected to move toward the $108K all-time high.
Meanwhile, it should also be noted that the RSI is entering an overbought region, which could result in a short-term pullback before further continuation.
Sentiment Analysis
By Edris Derakhshi (TradingRage)
Bitcoin Exchange Reserve
While Bitcoin’s price is once again breaking above the $100K level, understanding the supply and demand dynamics could provide valuable information. This chart presents the BTC exchange reserve, which measures the amount of Bitcoin held in exchange wallets.
As the chart demonstrates, the BTC exchange reserve metric has been dropping aggressively. As this vital metric is a proxy for supply, this decrease in selling pressure can lead to even higher prices in the coming weeks.
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