Bitcoin Consolidates Near $110,000 Awaiting Breakout to New Highs

Bitcoin (BTC) is currently experiencing a tightening range, with bulls actively purchasing minor corrections and driving the average daily trading price higher. This narrowing range suggests a potential breakout to new highs, as the price structure remains bullish with strong defense around the $107,000 level. The current upward push targets the weak high around $110,500, indicating that Bitcoin is consolidating near $110,000, awaiting a breakout.

The tightening range is further supported by the Bollinger Bands squeeze, which signals a possible breakout as trading volume jumps. Bitcoin remains 3% below its all-time high, and its valuation stays strong. The bullish defense of key support levels and the tightening range suggest that Bitcoin is poised for a breakout to new highs.

Bitcoin is being squeezed between the 20-day exponential moving average ($107,314) and the overhead resistance of $110,530. The upsloping 20-day EMA and the relative strength index (RSI) in the positive zone signal that the break may happen to the upside. If the $110,530 resistance is scaled, the BTC/USDT pair could challenge the all-time high at $111,980 and later the neckline of the inverse head-and-shoulders pattern. Sellers are expected to fiercely defend the neckline because a break above it will complete the bullish setup. That opens the doors for a potential rally toward the pattern target of $150,000.

This optimistic view will be invalidated in the near term if the price turns down and breaks below the 50-day simple moving average ($106,642). That could tempt short-term buyers to book profits, pulling the pair to $104,500 and then to $100,000. The pair is finding support at $107,245, indicating that every minor dip is being purchased. If buyers drive the price above the downtrend line, the developing descending channel pattern will be invalidated. The failure of a bearish pattern increases the possibility of a break above $110,530. If that happens, the pair may climb to $111,980 and subsequently to $113,500.

Instead, the bearish setup will complete if the price turns down and breaks below $107,245. That could sink the pair to the pattern target of $103,960. The Bitcoin ecosystem consists of a global network of stakeholders, including miners, traders, and builders. The network is powered by a cryptographically secure, verifiable database called the blockchain. The Bitcoin monetary policy is enforced through a unique blend of software, cryptography, and financial incentives, rather than the whim of trusted third parties.

The long-term investors now hold 80% of all BTC in circulation, which could trigger the next leg higher into price discovery if history repeats. The Bitcoin Mayer Multiple shows that Bitcoin is less overheated than during previous local bull market tops, but consensus is forming around an October blow-off top for BTC price action. The tightening range and bullish defense of key support levels suggest that Bitcoin is poised for a breakout to new highs. The current push higher targets the weak high around $110,500, indicating that Bitcoin is consolidating near $110,000, awaiting a breakout. The Bollinger Bands squeeze and the strong defense of key support levels further support this bullish outlook.