Bitcoin (BTC) has entered a critical phase after reclaiming the $100,000 level, with leading analysts suggesting a two-week consolidation period before the next major price movement. This analysis comes as long-term holders show increased selling pressure near $103K, creating an interesting market dynamic.
Key Price Levels and Market Structure
The flagship cryptocurrency has demonstrated remarkable strength, posting a 23% recovery from the $84,000 mark and reaching a three-month high of $105,819. Bitcoin’s current trading range between $92,000 and $106,000 places it just 4.4% below its January all-time high, suggesting potential for new records.
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Technical Analysis and Price Projections
According to analyst The Cryptonomist, Bitcoin is following a one-month rising wedge pattern that could propel prices to $110,000-$112,000. However, a break below $100,000 could trigger a pullback to the CME Gap at $92,000.
Global M2 Supply Correlation
Market analyst Ted Pillows has identified a significant correlation between Bitcoin’s price action and the Global M2 money supply. This relationship suggests a consolidation period lasting 1-2 weeks before a potential surge above $120,000.
Wyckoff Accumulation Analysis
The current market structure aligns with the final phase of Wyckoff accumulation, with consolidation above $100,000 serving as a springboard for the next upward movement. This technical pattern, combined with increasing liquidity, provides a strong foundation for future price appreciation.
Market Outlook and Trading Considerations
As Bitcoin trades at $104,916 with a slight 0.5% daily decline, traders should monitor these key levels:
- Primary resistance: $106,000
- Critical support: $100,000
- Secondary support: $93,000
- Target range: $110,000-$120,000
FAQ Section
When will Bitcoin break $120,000?
According to current analysis, Bitcoin could reach $120,000 after a 1-2 week consolidation period, provided it maintains support above $100,000.
What are the key support levels to watch?
The primary support level is at $100,000, with secondary support at $93,000. These levels are crucial for maintaining the current bullish structure.
How does the Global M2 supply affect Bitcoin?
The Global M2 supply correlation has historically provided reliable indicators for Bitcoin’s price movements, currently suggesting a brief consolidation before the next upward trend.