Bitcoin retraced from $104,734 to $100k on Thursday as the Elon-Trump feud heated up. It recovered the next day and returned to $105k on Saturday.
Speculation that the bull run is coming to an end is resounding as traders anticipate further price declines. However, recent price action suggests that this may not be the case, as the asset surged once the bearish calls reached new highs.
A previous analysis noted that the asset experienced a surge during periods of notable FUD. BTC’s hike to $105k suggests a minimal level of price uncertainty as the coin inspires more traders to open new long positions. The new week promises several events that could lead to further price increases, cementing their conviction.
Nonetheless, several factors are playing out at the time of writing. The crypto market is seeing minimal trading volume at the time of writing. Conversely, the largest cryptocurrency sees an 8% hike in buying and selling pressure.
However, readings from the 2-hour reveal no significant spike in buying pressure. The last two greens were among the smallest since the day began. The 4-hour chart sheds more light on this trend, showing no notable upside movement. MACD, in this timeframe, prints an ongoing bearish convergence.
Bitcoin Breaks Out
The largest cryptocurrency broke out of its two-day trend of ranging between $105k and $106k. It surged to a high of $108k a few minutes before the time of writing. Its latest surge sparked speculations of further increases.
Reports from Coinglass indicate that liquidations in the last 12 hours exceed $57 million. Short positions were the most affected, accounting for over $53 million. Data from Glassnodes noted that the liquidations relieved growing pressure on the asset. It inspires traders to go long, which may lead to further upward movement.
Data from CryptoQuant shows an increase in open interest. Coinglass indicates that most of the positions are long. Traders on major exchanges, such as Binance US and Binance.com, see bullish positions outnumber bearish ones. However, OKX investors anticipate further decline as short positions surge.
Will BTC Crush $115k?
Bitcoin is seeing notable positive action at the time of writing. The relative strength index on the 1-day chart is rising in response to the spike in buying pressure. It is at 59, a significant increase from its previous low of 42.
The moving average convergence divergence offers the biggest green. The 12 EMA halted its downtrend last week and is currently on the rise. Its trajectory suggests that it may intercept the 26 EMA within the next three days.
Bitcoin will continue its uptrend based on the outline indicators. Data from Coinglass shows that the apex coin is experiencing notable increased pressure at $108,300, which explains the slight rejection at $108k. Nonetheless, some traders anticipate a flip of this level. They are staging new selling pressure at $110k, indicating that a surge to this price mark is almost inevitable.
Readings from MACD suggest that the largest cryptocurrency may continue upward in the coming. A return to the all-time high remains likely. Positive fundamentals may continue to pour in, sealing a new ATH at $115k.
Conversely, fundamentals are a double-edged sword that may cause further declines. One such is the CPI release.
