Bitcoin Surpasses $105,000 with Latest Rally
Bitcoin surpassed $105,000 with the latest rally and was rejected from $105,000 levels just a stone’s throw away from reaching its previous ATH. While BTC was successful in its attempts to rise, it remained stuck in a narrow range, raising questions about its potential rise.
On-Chain Data Insights
On-chain data provider Swissblock said Bitcoin has attempted to break past $105,000 twice but failed to do so, after which the price consolidated within a narrow range, adding that the rally has yet to show any major strength. Underlining that a significant catalyst is needed for Bitcoin to continue its rise, Swissblock analysts stated that Friday is critical as the weekend is approaching.
“With the upcoming weekend, the rally is likely to be delayed unless there is a breakout on Friday in Bitcoin.”
Market Caution
Watch out for bull traps! Apart from Swissblock analysts, Material Indicators also said that unless a “serious catalyst” emerges, Bitcoin could test $100,000 before attempting another rally. “Unless there is a major catalyst, I don’t expect to see a sustained breakout to ATHs without BTC testing $100,000.”
Material Indicators added that although a test of the $100,000 support is expected, there is a golden cross indicating strong upward momentum. Noting that the important level to watch on the downside is the $98,000-$100,000 range, the analyst said, “Keeping all of the above in mind, be prepared for a test of support in the $98,000-$100,000 range, but until that happens, be careful of bull traps.”
*This is not investment advice.