Bitcoin Price Analysis: BTC Maintaining $100K Suggests Going After $110K and $120K Next

As a seasoned analyst with over two decades of experience in trading and market analysis, I must say that the recent Bitcoin rally to above $100K is nothing short of breathtaking. However, my years in this industry have taught me to always tread cautiously when analyzing market trends.

For the past few days, Bitcoin’s value has surpassed $100,000 and is now trending upward towards approximately $110,000.

Technical Analysis

By Edris Derakhshi (TradingRage)

The Daily Chart

Over the last several weeks, this asset has been exhibiting an upward trend, with both its peak and trough values increasing. This climb persisted even after the rapid uptrend paused following the breach of the $90K mark. Interestingly, the market initially struggled to surpass the $100K level on initial attempts, but eventually managed to do so a few days back.

Currently, the possible price targets for Bitcoin seem to be around $110,000 and $120,000. The $100,000 mark has become a supportive area in its current context.

The 4-Hour Chart

As a crypto investor, I’m closely watching the 4-hour chart, and it’s giving me some cause for concern. The market hasn’t managed to break above the ascending channel just yet, which could potentially signal a reversal if we see a downturn. At the moment, the price is testing the upper boundary of this channel. If there’s a bearish rejection at this point, the $100K support level might be our first stop.

If the market manages to shatter its current upward trend, it might lead to a strong push towards increased prices.

On-Chain Analysis

By Edris Derakhshi (TradingRage)

Exchange Reserve

Over the last several weeks, Bitcoin’s value has been surging and setting record highs. Meanwhile, investors have been buying up more of this cryptocurrency, which may well be one of the main factors driving the current price surge.

The exchange reserve metric, which measures the amount of BTC held in exchange wallets, is demonstrated in this chart. It is quite a helpful metric, and many analysts use it as a proxy for supply.

As the chart depicts, the exchange reserve metric has been dropping rapidly over the recent weeks, indicating a considerable decrease in supply. If this trend continues, Bitcoin will likely see higher prices in the coming months, as the supply and demand equation is clearly in favor of a price increase.

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2024-12-17 17:28