Bitcoin Surges 15% to $95,000, Traders Wary of Volatility

Bitcoin (BTC) has surged to its highest levels in seven weeks, reaching above $95,000. This price movement has sparked a battle between buyers and sellers, with traders closely monitoring the situation. The recent gains have made traders increasingly wary due to the rapid pace of the price increase.

Despite the bullish sentiment, multiple commentators have expressed doubts about Bitcoin's ability to reach $100,000 in the short term. The current price range is crucial for the Bitcoin bull market, as a weekly close above the Bull Market Support band could indicate new highs. However, there is a tug-of-war between a large-volume buyer and seller, with one eventually likely to concede, leading to increased volatility.

Keith Alan, cofounder of trading resource Material Indicators, has also cast doubt on Bitcoin's ability to sustain a price above $95,000. He noted declining volume as the price moved higher, repeated wicks below the yearly open, and a "down" signal on one of Material Indicators’ proprietary trading tools. Alan suggested that a pump above $95,000 would invalidate the new signal but would likely be considered a short squeeze unless there is a substantial catalyst.

Macroeconomic perspectives also suggest a period of consolidation before Bitcoin returns to six figures. Trading firm QCP Capital argued that Bitcoin lacks a $100,000 "catalyst" and that positioning has become more crowded, which could lead to sharper reactions around key levels. Market participants are closely watching for signs of continuation or exhaustion.