Bitcoin Surges 5% to $105,000, Potential New Highs Ahead
1min read Bitcoin's price has surged back above $105,000 during the recent trading session, forming a double bottom pattern on the 1-hour chart. This pattern suggests a potential rally, with available liquidity around the $102,500 zone being swept, which could pave the way for new all-time highs this week.
According to fractal analysis, Bitcoin's current price range between $106,300 and $100,600 mirrors a previous range between $97,900 and $92,700. This pattern indicates three possible scenarios: immediate trend reversals at range lows and highs, the formation of a double bottom after range highs, and the sweeping of internal liquidity levels. If this pattern holds, Bitcoin could consolidate between $103,500 and $105,200 over the next 24 hours, increasing the chances of breaking above $107,000 and potentially reaching new highs above $110,000 this week. However, a failure to hold $103,500 could lead to a retest of the $102,000 support, invalidating the price fractal and opening the possibility of new lows under $102,000.
Glassnode data reveals a significant shift in Bitcoin investor behavior, with small holders and larger cohorts exhibiting strong accumulation scores. This trend suggests growing market confidence and has historically preceded BTC price rallies. However, a bearish divergence on the daily chart, noted by crypto analyst Bluntz, could dampen BTC’s hopes for a new all-time high this week. A bearish divergence occurs when the price forms a higher high, but the relative strength index (RSI) indicator forms a higher low, indicating fading buying pressure as prices soar.
Bitcoin analyst Matthew Hyland also pointed out that if the bulls want to remain in control, they need to push prices higher in the coming weeks. Hyland stated, “BTC is now on the clock and probably needs to make a move to $120k-$130k in the coming weeks to make a higher high on the RSI and avoid any weekly bearish divergence from being confirmed.” This analysis suggests that while there is potential for new all-time highs, the market needs to see sustained buying pressure to maintain the current bullish trend.
