Bitcoin Surges 4% to $109,000, Invalidating Bearish Pattern

Bitcoin (BTC) has surged past $109,000, invalidating a bearish pattern and setting the stage for bulls to potentially reach new all-time highs. The rally on Wednesday and the continued uptrend on Thursday indicate strong demand from buyers. According to Markus Thielen, head of research at 10x Research, Bitcoin could surge to $116,000. This prediction is supported by strong inflows into spot Bitcoin exchange-traded funds, uncertainty surrounding the US Federal Reserve, and a sharp drop in Bitcoin supply on crypto exchanges.

Analyzing the charts, Bitcoin bounced off the $105,000 support and closed above the downtrend line on Wednesday. This invalidated the bearish descending triangle pattern, which is a positive sign for bulls. Both moving averages are sloping up, and the relative strength index (RSI) is in positive territory, indicating an advantage for buyers. The BTC/USDT pair could reach the neckline of the inverse head-and-shoulders pattern, where bears are expected to step in. If bulls do not give up much ground from the neckline, it increases the likelihood of a break above it, potentially rallying toward the pattern target of $150,000.

However, sellers will need to pull the price below the moving averages swiftly to prevent the upside. If this happens, the pair may slump to $105,000 and subsequently to $100,000. On the 4-hour chart, the price broke above the downtrend line and successfully retested the breakout level, signaling that bulls are trying to flip the level into support. The upsloping moving averages and the RSI in the positive zone indicate that bulls have the edge. However, bears are unlikely to give up easily and will try to defend the zone between $110,500 and $111,980. If the price turns down from the overhead zone but finds support at the moving averages, it signals a positive sentiment, increasing the likelihood of a break above $111,980. If the price turns down and plummets below the moving averages, sellers will regain control.

This analysis does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.