CryptoHow Likely is for BTC to Break Above $100K...

How Likely is for BTC to Break Above $100K This Week?

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Bitcoin is struggling to regain momentum, with its price action stagnating around the 100-day moving average. The current market structure suggests a pivotal moment, where a bullish rebound remains a strong possibility.

Technical Analysis

By Shayan

The Daily Chart

Bitcoin’s price has been consolidating near the crucial 100-day moving average at $96K, with sellers attempting to push it below this key support. A decisive breakdown could trigger a deeper correction toward the substantial $90K support in the coming weeks.

On the flip side, if buyers defend this critical zone and initiate a rebound, an upward move toward the $100K psychological resistance becomes increasingly likely. The RSI hovers near the neutral 50 mark, signaling a balance between bulls and bears, with a breakout in either direction determining the next trend.

btc_price_chart_1502251
Source: TradingView

The 4-Hour Chart

Zooming into the 4-hour timeframe, Bitcoin’s price action remains within a large bullish flag pattern. Currently, the price is hovering just above the pattern’s lower boundary, a key level that must hold to sustain the bullish outlook. If support remains intact, the market could witness a breakout above the upper trendline, paving the way for a continuation of the uptrend.

However, a failure to hold this level could accelerate selling pressure, potentially dragging the price toward the $90K mark or lower. Until a breakout occurs, traders should prepare for heightened volatility and cautious market movement.

btc_price_chart_1502252
Source: TradingView

On-chain Analysis

By Shayan

Bitcoin’s prolonged consolidation near all-time highs can largely be attributed to substantial profit-taking by long-term investors. This trend is evident in the Long-Term Holder SOPR metric, which measures the profitability of coins held for over six months.

The 30-day moving average of the Long-Term Holder SOPR suggests that long-term investors have been actively selling their holdings to secure profits. This selling pressure has played a significant role in Bitcoin’s struggle to extend its rally. However, it’s worth noting that these profit-taking levels remain lower than those observed last summer when Bitcoin was trading at lower price levels.

If selling pressure eases, Bitcoin could gain the necessary momentum for a new leg higher, potentially breaking out of its current consolidation phase and aiming for new all-time highs.

btc_long_term_holder_sopr_chart_1502251
Source: CryptoQuant
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Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.

Cryptocurrency charts by TradingView.



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