Bitcoin enthusiasts are on edge this week as fractal analysis suggests the cryptocurrency may break new ground, potentially surging past $110,000. Analysts are closely watching the charts, with some pointing to historical patterns that hint at imminent all-time highs. As the digital asset remains a cornerstone of the crypto market, its movements have significant implications for investors and traders alike.
Fractals and Patterns: A Prelude to New Highs?
Bitcoin’s recent price action has captivated the market, with on-chain data indicating a potential for groundbreaking highs. The cryptocurrency recently bounced back above $105,000 during the US trading session, buoyed by a double bottom pattern on the hourly chart. This pattern, a classic bullish signal, has left analysts optimistic about Bitcoin’s short-term prospects. As explored in our recent coverage of Bitcoin’s surge past $94,000, institutional interest and market optimism have been key drivers in this upward momentum.
The current trading range of Bitcoin, nestled between $106,300 and $100,600, mirrors previous setups that led to significant upward movements. Notably, the formation of a double bottom at range highs ($97,900 and $107,144) has many speculating that Bitcoin could soon breach the $110,000 mark. However, this optimism is tempered by the possibility of consolidation between $103,500 and $105,200. Should this consolidation fail to hold, a retest of the $102,000 support level might be on the cards, potentially invalidating the current price fractal.
Market Sentiment: Accumulation and Divergence
On-chain metrics reveal a fascinating shift in investor behavior, underscoring growing market confidence. Glassnode’s Accumulation Trend Score chart highlights that smaller holders, those with less than 1 BTC, are joining the bullish charge. Meanwhile, larger cohorts, particularly those holding between 100 and 10,000 BTC, exhibit strong accumulation scores of 0.9 and 0.85, respectively. This trend, often a precursor to price rallies, suggests a robust market sentiment.
Yet, not all news is rosy. A daily bearish divergence could threaten Bitcoin’s ascent. Crypto analyst Bluntz points to a divergence on the daily chart, where the price is making higher highs, but the RSI (Relative Strength Index) is forming higher lows. This pattern indicates waning buying pressure, a potential hurdle for Bitcoin’s rally. Echoing this sentiment, analyst Matthew Hyland emphasizes the need for bulls to push prices higher to avoid confirming a weekly bearish divergence.
The Road Ahead: Challenges and Opportunities
As Bitcoin dances around the $105,000 mark, traders and analysts are keenly observing whether the cryptocurrency can muster the momentum to push past $110,000. The stakes are high, with some experts suggesting that a move towards $120,000 to $130,000 in the coming weeks could solidify bullish control. This follows a pattern of institutional adoption, which we detailed in our analysis of Bitcoin’s price potential amid Fed rate cut odds. However, the market remains rife with uncertainties. The possibility of a bearish divergence looms large, prompting questions about the sustainability of this rally.
Bitcoin’s trajectory this week could set the tone for the rest of the year. With market sentiment evolving and technical indicators painting a mixed picture, the cryptocurrency’s path forward is anything but certain. As always, potential investors are reminded of the inherent risks in the volatile crypto market. Conducting thorough research and exercising caution remains paramount.
In conclusion, while Bitcoin’s fractal analysis paints a promising picture for potential new highs, the market is far from predictable. Traders are left weighing the bullish signals against the lurking bearish divergences. As the week unfolds, all eyes will remain glued to the charts, waiting to see if Bitcoin can indeed achieve new all-time highs or if caution will win the day.
Source
This article is based on: Bitcoin fractal analysis forecasts new all-time highs above $110K by end of week
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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.
