Bitcoin Bullish Momentum Builds as Price Nears $110,000

Bitcoin's price action has been characterized by a tightening trading range, with bulls actively buying into minor corrections and driving the average daily trading price higher. This consolidation phase has been evident as Bitcoin's price structure remains within a narrowing range, with bulls defending the $107,000 level while targeting the weak high around $110,500. The current price hovers around $108,300, with bulls testing the upper supply zone between $108,800 and $110,400.

The tightening range is further supported by technical indicators such as the Bollinger Bands, which are squeezing, signaling a potential breakout. This squeeze, combined with a jump in trading volume, suggests that Bitcoin is poised for a bullish move. The cryptocurrency remains 3% below its all-time high, and its valuation stays robust, indicating strong underlying support.

Analysts have noted that the Bitcoin Network Value to Transactions (NVT) Golden Cross has surged close to the historical topping zone. This on-chain data suggests that the current price action is part of a broader bullish trend, with the potential for a significant breakout to new highs. The tightening range and the bullish defense of key support levels indicate that the market is building momentum for a potential surge.

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 sentiment in the broader cryptocurrency market has also shifted from hype to utility, with a focus on the long-term value proposition of tokens. This shift is evident in the memecoin market, which surged 169% in 2024, hitting $60 billion. The analysis of 145 tokens shows a growing emphasis on utility and real-world applications, which bodes well for the overall health of the cryptocurrency ecosystem.

Looking ahead, bullish traders expect Bitcoin to reach $110,000, fueled by technical patterns and liquidity shifts. The current price action and technical indicators suggest that a breakout to new highs is imminent, with the potential for a significant surge in the coming weeks. The tightening range and the bullish defense of key support levels indicate that the market is primed for a bullish move, with the potential for a breakout to new all-time highs.