Bitcoin Targets $106,000 as Traders Anticipate Recovery

Bitcoin (BTC) has been targeting the $106,000 mark as traders anticipate a sustained price recovery. This move comes after the cryptocurrency dipped below its previous all-time highs from late 2024, raising concerns about potential support tests around the $100,000 level. Data from Cointelegraph Markets Pro and TradingView indicated that BTC/USD reversed losses seen after the daily close, suggesting a bullish turnaround.

Analysts have noted significant liquidity zones both above and below the current spot price. Popular trader Daan Crypto Trades highlighted major liquidity zones above $110,000 and below $103,000, indicating that there are still substantial positions built up on both sides. This liquidity could be targeted for price movements, either higher or lower, to take neighboring liquidity.

Data from monitoring resource CoinGlass underscored the potential for price to "squeeze" higher or lower to take neighboring liquidity, with upside liquidity already in the firing line. Trading resource Material Indicators identified key areas of support in the event of a fresh downturn, noting approximately $263 million in BTC bid liquidity laddered down to $97,750. This additional block of plunge protection just above the Yearly Open is expected to help keep the price elevated and the macro trend intact.

Despite the bullish sentiment, Material Indicators expressed doubt about Bitcoin hitting new all-time highs in the coming week without a suitable volatility catalyst. The trend remains upward, but there has been no strong continuation above $100,000 this year. This suggests that while the market is bullish, it may need additional catalysts to push prices to new highs.

In recent research, onchain analytics firm Glassnode highlighted the unusual nature of recent returns. The recent Bitcoin all-time high breakout has led to a notable uptick in profits locked in, with the average coin capturing a +16% profit. Fewer than 8% of trading days have been more profitable for investors, indicating a meaningful transition into profit-taking activity. However, Glassnode noted that despite hodlers cashing out, the market has not yet reached the kind of "euphoric" state seen during previous long-term price tops.

Overall, the market is showing signs of a bullish turnaround with significant liquidity zones and support levels in place. However, the absence of strong continuation above $100,000 and the lack of "euphoric" profit-taking suggest that the market may need additional catalysts to push prices to new highs. Traders and investors should conduct their own research and be aware of the risks involved in any investment or trading move.