Bitcoin (BTC) is currently maintaining a range-bound trading pattern, hovering between $100,000 and $110,000, and analysts suggest that fresh demand is crucial for the cryptocurrency to break higher. As of today, Bitcoin is trading above $107,000, with analysts eyeing a potential all-time high above $112,000. Bulls are sustaining prices above $105,000, supported by easing inflation and continuous institutional buying.
To establish a stronger bullish momentum, Bitcoin needs to overcome the resistance level between $108,000 and $110,000 and flip it into a support level. According to AlphaBTC, a popular Bitcoin analyst, achieving this breakthrough will require significant effort. Some analysts suggest that the next logical move for Bitcoin would be a pullback to the $104,000-$105,000 zone to gather liquidity before attempting another upward move.
Several factors indicate the potential for a bullish breakout. Since 2021, approximately 78% of Bitcoin's bullish engulfing patterns have led to new local highs, especially within broader uptrends. A recent bullish engulfing pattern, coupled with BTC maintaining support above $105,000 for two consecutive days, signals a potential shift in market structure and adds weight to the ongoing recovery.
Liquidity conditions are also flashing "undeniably bullish" signals, reminiscent of late 2022, a period that preceded a substantial price increase. Since November 2022, Bitcoin has absorbed over $544 billion in capital, pushing its realized market cap to $944 billion.
However, there are also factors that suggest a need for caution. Bitcoin's on-chain transfer volume and spot trading volume are currently down, indicating a potential cool-down phase. The seven-day moving average of on-chain transfer volume has decreased by approximately 32% from a peak in late May, and spot trading volume is significantly lower than the cyclical peaks observed in this bull market. A revival in demand, activity metrics, and conviction is needed to increase the odds of a breakout to new highs in the near term. A high-volume push above $107,500 is considered the first technical trigger to ignite a more substantial rally.
Despite the short-term uncertainty, the long-term outlook for Bitcoin remains positive. Bitcoin is currently in a rising trend channel, indicating that investors have consistently bought the currency at higher prices over time. This suggests increasing optimism among investors and indicates continued rise. Investor Dan Tapiero has predicted that Bitcoin could reach $180,000, emphasizing the need to break the $115,000 resistance level for strong upward momentum. Bitcoin has completed its current Base 4 in a parabolic growth curve, with projections suggesting it could reach prices between $300,000 and $425,000 in its final leg of the market cycle.
