According to Cointelegraph, Bitcoin (BTC) experienced a significant rally on Wednesday, surpassing $109,000 and invalidating a bearish pattern. This development has set the stage for potential bullish momentum, with the cryptocurrency aiming for a new all-time high. The surge continued into Thursday, reflecting sustained demand from bullish investors. Markus Thielen, head of research at 10x Research, suggested that Bitcoin could climb to $116,000, driven by strong inflows into spot Bitcoin exchange-traded funds, uncertainty surrounding the U.S. Federal Reserve, and a notable decrease in Bitcoin supply on crypto exchanges.
Bitcoin's price action has been noteworthy, as it bounced off the $105,000 support level and closed above the downtrend line on Wednesday. This move invalidated the bearish descending triangle pattern, signaling a positive shift in market sentiment. The BTC/USDT pair is showing signs of strength, with both moving averages trending upward and the relative strength index (RSI) in positive territory, indicating an advantage for buyers. The pair could potentially reach the neckline of the inverse head-and-shoulders pattern, where bears are expected to challenge the bulls. If the bulls maintain their position near the neckline, it increases the likelihood of a breakout, potentially driving the price toward the pattern target of $150,000.
Despite the bullish outlook, sellers remain vigilant and will need to act swiftly to push the price below the moving averages to prevent further upside. If successful, the pair may decline to $105,000 and subsequently to $100,000. On the 4-hour chart, Bitcoin's price broke above the downtrend line and successfully retested the breakout level, indicating that bulls are attempting to establish this level as support. The upsloping moving averages and positive RSI suggest that bulls currently have the upper hand. However, bears are expected to fiercely defend the zone between $110,500 and $111,980. If the price retreats from this overhead zone but finds support at the moving averages, it signals a positive sentiment, increasing the likelihood of a breakout above $111,980. Conversely, sellers will regain control if the price falls below the moving averages.
This article does not provide investment advice or recommendations. Every investment and trading decision involves risk, and readers are encouraged to conduct their own research before making any decisions.
