Bitcoin's price has recently surged, indicating that it may reach historical highs, with traders focusing on the key liquidity level around $100,000.
Bitcoin has a bullish structure, and the pullback to $93,400 is merely a temporary setback.
The liquidation heatmap shows that BTC may be pulled up by a magnetic zone.
On the morning of May 8, Bitcoin [BTC] briefly reached a high of $99,800, then began to pull back near the $100,000 mark. Previously, the Federal Reserve maintained interest rates after an optimistic employment report. The Federal Reserve concluded that, despite stagflation risks, the economy is 'in good shape.'
Technical analysis shows that BTC may soon move towards the historical high of $108,700. Indicators suggest the market is in a bullish phase, but it is not overheated, leaving room for further upward movement.
Bitcoin investors are preparing to break through $100,000.
Three months ago, in early February, Bitcoin fell below the psychological barrier of $100,000 and showed a downward trend, dropping to $74,500 in the first week of April. However, the price trend quickly reversed thereafter.
The past two weeks have formed a short-term range pattern, but Bitcoin has surged strongly, breaking through the local high of $97,000.
Over the past month, the On-Balance Volume (OBV) has been on the rise, challenging the highs from January, indicating strong buying pressure.
The Money Flow Index (MFI) is at 70, showing bullish momentum but has not yet entered the overbought zone. This indicates that traders should closely monitor the market, as a drop at the close of the trading period could signal a change.
The three-month liquidation heatmap shows a series of liquidation levels that BTC has encountered on its way to potential historical highs. The area of $100,000 to $107,000 acts like a magnetic zone that could pull prices up.
Therefore, traders can expect prices to approach historical highs and may even break through. Additionally, the range of $91,600 to $92,300 represents another key liquidity cluster that could significantly impact market dynamics.
Key indicators for future trends.
Investors are currently closely monitoring key indicators that could determine Bitcoin's future trend. Supported by institutional investor interest and a solid technical foundation, the overall sentiment in the cryptocurrency market remains bullish.
Analysts believe that closely monitoring broader market trends is crucial for assessing potential price corrections or continued upward momentum. Short-term volatility may lead to profit-taking, but potential bullish sentiment seems to remain strong.
As Bitcoin gradually breaks through the $100,000 barrier, strong indicators and a favorable market environment suggest that traders are optimistic about prices. Market focus remains on key liquidation levels, and the possibility of reaching historical highs is increasing. Investors should stay updated on the latest developments and be prepared for various price movements.
