Bitcoin continues to make its mark with an impressive upward trend until the weekly closing session on May 11, as technical analysts focus on key support levels to protect the current upward momentum.
During the weekend trading session, BTC recorded positive volatility, climbing close to $105,000 – the highest peak in several months. This upward momentum occurred amidst a market lacking liquidity, often seen in 'after-hours trading' sessions, and was driven by optimistic expectations surrounding positive signals from US-China trade.
Renowned analyst Rekt Capital stated that Bitcoin is at a critical stage and may be closer to establishing a new historical peak. He emphasized that the weekly close around the $104,500 mark is crucial for turning the old resistance zone into support:
"Can Bitcoin close the week above the peak of the recently re-established accumulation range to initiate a price exploration phase?" Rekt Capital questioned in a post accompanied by a chart on X.
He also stated that the current bullish market of Bitcoin has completed about 85.5%, and the biggest fluctuations may still be ahead.
According to the latest order book data from CoinGlass, there is a concentrated bid-ask volume around the $102,000–$106,000 area, creating a dense liquidity zone surrounding the spot price at the weekly close.
BTC liquidation heatmap | Source: CoinGlass
Breakthrough or trap?
Despite the market being euphoric, some traders remain cautious. Analyst HTL-NL warns that the recent rise might just be a 'trap' for late investors:
"Will BTC close or open the next week within the range, creating a false breakout pattern (UTAD), or is this truly a re-accumulation phase?" he wrote on X, acknowledging that re-accumulation is possible, although he still leans towards the first two scenarios based on monthly and quarterly charts.
Meanwhile, Il Capo of Crypto – a familiar name in the technical analysis community – also issued a warning in an update on May 10, suggesting that Bitcoin could reverse the entire recovery if this is just a pullback in the downtrend since January:
"Now is the time to scale up risk management, not to scale it down. Strong resistance zones are being tested. If this is a correction in a downtrend, the entire bullish move could be completely erased."
Il Capo became famous in 2023 for his controversial forecast that Bitcoin's price could drop to $12,000 in the early phase of the bull market.
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