Bitcoin’s trajectory into a new era of price discovery hinges on a crucial milestone—closing the week above $104,500. As the cryptocurrency market buzzes with anticipation, traders and analysts are eyeing this key level to see if Bitcoin can maintain its momentum and potentially reach unprecedented heights.
Surging Towards New Heights
In recent days, Bitcoin has flirted with multi-month peaks, nearly hitting $105,000. This surge was fueled by weekend volatility, particularly during “out of hours” trading when liquidity tends to thin out. Enthusiastic whispers of a new trade agreement between the U.S. and China have added fuel to the fire, as traders speculate on the potential economic boosts such a deal could bring. A notable uptick in shipping data further suggests that something significant might be brewing on the trade front. As explored in our recent coverage of Bitcoin’s jump above $97K amid U.S.-China trade deal optimism, such geopolitical developments have historically influenced market sentiment.
Rekt Capital, a well-regarded analyst in the crypto space, has highlighted the importance of Bitcoin transforming $104,500 from resistance into support. In a post shared on the platform X, he noted, “Bitcoin is on the cusp of beginning Price Discovery Uptrend 2.” His insights, echoed by many in the trading community, underscore the broader sentiment that Bitcoin is on the verge of a breakout, provided it can maintain its current trajectory.
Market Dynamics and Skepticism
Despite the optimism, there remains a cloud of skepticism hovering over Bitcoin’s recent rally. Data from CoinGlass reveals a substantial cluster of sell orders just below the $106,000 mark, indicating a potential battleground where bulls and bears will clash. Meanwhile, buy orders have formed a supportive layer down to $102,000, creating a thick band of liquidity.
Not all are convinced that Bitcoin’s rise will be sustained. Traders like HTL-NL have expressed concerns about a possible “fakeout”—a trap for those entering late into the bullish trend. He cautioned that the current movement might merely be a temporary spike within a broader range. “Will $BTC close/open the week remaining within the range, will it do a ‘fake out (UTAD)’ or was this really a reaccumulation range as many want to believe,” he pondered, reflecting the uncertainty that permeates the market.
Il Capo of Crypto, a pseudonymous trader known for his bearish predictions, has also issued warnings. He argues that Bitcoin could see a complete retracement of its recent gains, suggesting that the current resistance levels are formidable. “This is the time to scale out, not in,” he advised, pointing to the possibility of a deeper correction.
Historical Context and Future Implications
Bitcoin’s current bull market, according to Rekt Capital, is 85.5% complete, with the most volatile phases yet to unfold. Historical patterns suggest that the culmination of such cycles often leads to rapid, parabolic advances. However, the path forward is fraught with unpredictability. For more insights into potential market movements, see our coverage of traders eyeing a breakout to new highs.
Looking ahead, Bitcoin’s ability to sustain its momentum above $104,500 will be pivotal. Analysts will be closely monitoring how these dynamics play out over the coming weeks. If Bitcoin manages to secure this level as support, it could pave the way for a new phase of price discovery, potentially setting the stage for all-time highs.
Yet, as always in the world of cryptocurrency, caution is warranted. The market’s inherent volatility means that nothing is guaranteed. As traders navigate these turbulent waters, the question remains: Will Bitcoin manage to break free into a new era of discovery, or will it be pulled back by the gravitational forces of market resistance? Only time will tell.
Source
This article is based on: Bitcoin must close the week above this level to start 'price discovery 2'
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
