Bitcoin Rebounds 3% to $105,560 After Volatile Week

Bitcoin has recently experienced significant price fluctuations, with its value dropping to nearly $98,400 before rebounding above $105,000 on Monday. This volatility has sparked discussions among analysts about potential price movements and market trends.

Technical analyst Doctor Profit recently highlighted a substantial Chicago Mercantile Exchange (CME) gap at $92,000. This gap, according to the analyst, is likely to be filled, which could create additional market fear and benefit market makers. The presence of significant liquidity in this area makes it a probable target for Bitcoin in the near term, potentially leading to a 12% retrace of BTC’s price.

Doctor Profit also pointed out several technical indicators suggesting a bearish trend for Bitcoin. These include the Moving average convergence/divergence (MACD) crossing on the daily chart and the breakdown of the critical $104,000 level. Additionally, the temporary loss of what he calls the “golden line,” currently situated around $103,000 for BTC, is another key level to watch for further recoveries.

The analyst warned that caution is necessary, especially near pivotal levels like $100,000 and the CME gap at $92,000. In a worst-case scenario, Bitcoin could correct all the way down to the $82,000–$84,000 range. Doctor Profit further elaborated that the situation hinges on the golden line, which serves as a critical retest to confirm the breakdown that occurred. For Bitcoin to secure a bullish continuation, it needs to close above this level.

Moreover, he identified a significant liquidity cluster around the $113,000 mark, noting that this area is rife with short liquidations. Should Bitcoin consolidate above the golden line, the uncertainty that has plagued traders could dissipate, allowing for a shift from protective strategies back to a more bullish outlook.

In his analysis, Doctor Profit concluded by stating that while he initially expected Bitcoin to reach $90,000 before any new all-time highs (ATH), the resolution of current market uncertainty indicates that this may no longer be necessary. With the war between Israel and Iran, along with the volatility seemingly over, he believes Bitcoin can accelerate toward new all-time highs without the need to revisit the $90,000 mark.

At the time of writing, BTC trades at $105,560, recording a 3% price surge in the 24-hour time frame. At this level, the market’s leading cryptocurrency trails 5.3% below its record high of $111,800. The daily chart shows BTC’s price recovery, indicating a potential for further gains if the current trends continue.