Bitcoin’s Surge Above $105K Is Only the Beginning, Here’s Why

10x Research, a cryptocurrency market research firm founded by Markus Thielen, recently explained why bitcoin (BTC) surging above $105,000 is only the beginning.

In an X post on Monday, the research firm revealed that the crypto asset turned bullish right when it surpassed the $84,000 trend line. Since then, the price of BTC has aggressively spiked, reaching over the $105,000 price mark.

Furthermore, the firm noted that its bullish call spread position has yielded positive returns amid bitcoin’s Surge to $106,000. Despite previous price drawbacks, the asset has shown relentless progress.

“Our strategy to go long on call spreads has paid off, with Bitcoin now reaching $106,000. But the real question is: could this be the start?” 10x Research wrote.

In line with current market reactions, the digital asset research firm disclosed that its next target for the BTC price is within reach, fueled by macroeconomic factors, including easing inflation concerns and strong spot market demand.

“Our next target of XXX is within sight, driven by a perfect storm of macroeconomic factors, including easing inflation fears and a market fueled by spot buying,” the firm added.

Will BTC Keep Soaring High?

Additionally, the firm stated factors that could make the rally continue. It revealed that the 21-week moving average, hovering at $86,694, continues to be a key marker for determining whether bitcoin is in a bull or bear market. According to the firm, it is now approaching a possible flip, indicating a potential trend reversal.

With three major reversal indicators now bullish, the Relative Strength Index (RSI) has notably surged above the 50% mark, indicating a strengthening momentum. The firm also observed a positive divergence between the RSI and bitcoin’s price action, despite BTC reaching a lower low, the RSI did not follow suit.

Notably, this is typically interpreted as a bullish divergence, indicating possible upward momentum. RSI is a momentum indicator used in technical analysis. It evaluates the speed and size of recent price changes to determine whether an asset is overbought or oversold.

Bearish Trend Turns Bullish

Recall that 10x Research noted on April 12 that since the trend model became bearish on February 1 at $97,000, it has stayed negative, but it has just turned bullish, with the stop set at $74,000. After a prolonged downturn that has lasted since the inauguration of United States President Donald Trump, BTC is currently breaking above it.

Meanwhile, the research firm stated that with BTC approaching its $106,000 target and the market structure changing, 10x Research is revising its upside target.

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