Bitcoin Closes Above $109,000 Marking 10% Gain

Bitcoin has achieved a historic milestone by closing above $109,000 for the first time, marking a significant achievement in its price trajectory. This weekly closing high of $109,203 reaffirms the strong bullish momentum that has been building in the market. Following technical corrections that began after a significant rally in the second quarter, Bitcoin has now firmly re-entered the all-time high (ATH) zone.

The recent break above the upper boundary of a multi-week descending channel has been noted by market analysts as a potential trend reversal. However, there is caution among experts who suggest that this breakout could be a "bull trap," drawing close attention to the cryptocurrency’s next directional moves. Cryptocurrency trader Louigi_24 observed that Bitcoin demonstrated a robust bullish signal, breaking the upper boundary of a multi-week descending channel. This channel had exhibited three upper touches and two lower touches, forming a classic "bull flag" pattern—a bullish continuation structure typically seen after a strong upward impulse.

Following the breakout, the price showed resilience by bouncing off the Fair Value Gap (FVG) zone on the daily chart and successfully flipping the channel’s upper resistance into a new support level. This movement aligns with a bull flag scenario where a brief consolidation phase leads to a breakout. According to Louigi_24, the next target for Bitcoin lies within the $112,000–$114,000 range. If the ATH breakout firmly transitions into a support level, the bullish momentum is likely to strengthen further.

Rekt Capital, a prominent crypto analyst, highlighted that Bitcoin has fully retraced its First Price Discovery Correction phase and is now attempting to transform the upper boundary of the Re-Accumulation Range into solid support. He suggested that, if Bitcoin establishes this as a new base, it could signal the transition into a "Second Price Discovery Uptrend." This transition would indicate a sustained upward trend, potentially leading to new all-time highs.

Despite the breakout signaling strength, short-term caution remains. Analysts warn that if Bitcoin fails to sustain its upward momentum and experiences declining buying pressure near the pre-ATH zone, the recent breakout could turn into a "bull trap." Trader Xanloux flagged the 0.618 Fibonacci retracement level at $102,909, as well as the unfilled FVG between $102,000 and $104,000, as potential short-term corrective targets. He suggested that a liquidity-driven dip could occur as part of the market’s effort to reclaim these zones.

Furthermore, the influx of short-term long positions near the recent highs raises concerns about potential profit-taking by whale investors. Retail traders are urged to remain vigilant for signs of liquidity extraction in the coming days. Market experts suggest that investors closely monitor whether Bitcoin can transcend this technical breakout into a new bullish phase or whether the market undergoes a liquidity retest and prepares for the next rally. The next few weeks could prove critical in determining Bitcoin’s trajectory.

In summary, while Bitcoin’s recent performance highlights strong bullish momentum and the potential for further growth, traders and investors must remain cautious of possible short-term volatility as the market gauges the sustainability of the breakout. The event sees increased institutional involvement, with institutional backing from Wall Street having lowered volatility for Bitcoin, impacting overall market health positively. This marks a notable point in Bitcoin's trading history, as Bitcoin's ties to equities also proved prominent, as the asset's trading mirrored broader market trends. As NYDIG's research suggests, "Bitcoin...has increasingly exhibited sensitivity to...equity markets."