Bitcoin Breaks Consolidation, Eyes 6% Gain to $110,660
1min read Bitcoin has been consolidating over the past three days, trading within a narrow range of $103,000 to $104,500. This consolidation follows a significant rally that pushed the cryptocurrency above $100,000 last week. Technical analysis of the daily candlestick chart indicates the formation of a minor impulsive wave from $103,000, suggesting that the recent consolidation phase may be coming to an end and paving the way for a fresh rally towards new highs.
In the past 12 hours, Bitcoin has shown signs of breaking out of its consolidation zone, with analysts turning their attention to the next psychological level at $110,000. Crypto analyst CrediBULL shared insights on a social media platform, highlighting that Bitcoin has broken away from its three-day consolidation zone with an early impulse starting at the $103,000 level. This movement could signal the beginning of a larger upward trend, provided the current price structure holds without falling back into a local demand zone between $101,000 and $102,000.
CrediBULL's analysis suggests that the current trade setup has a clean invalidation level just below the impulse origin, allowing for a tight stop loss. This setup offers a high reward-to-risk ratio exceeding 5:1, with an upside target of $110,660. If this breakout is genuine, it could indicate that Bitcoin is preparing for an aggressive push toward new all-time highs. However, if the current move proves to be a deviation and the price falls below the impulse origin, focus should shift to the local demand zone around $101,800, which is the next major support if Bitcoin bulls fail to hold the current price levels.
According to the analyst, the prediction of the next move to $110,000 has at least a 20% chance of playing out, which is considered favorable given the unpredictable nature of the crypto market. In the past 24 hours, Bitcoin has broken above $105,000, peaking at an intraday high of $105,503 before easing slightly. This move strengthens the case that the recent consolidation phase may have concluded, and a successful move above $110,000 before the end of the week is underway.
At the time of writing, Bitcoin is trading at $104,428. A successful rally to the $110,660 target would represent a 6% gain from the current price, while downside risk is capped below the $103,000 level. The market momentum appears to be increasing, supporting the potential for Bitcoin to reach new all-time highs in the near future.
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