According to Cointelegraph, Bitcoin is about to achieve its highest monthly close in history, with only 11 days remaining in the month. Following a record weekly close of $106,407 on May 18, Bitcoin could secure a new monthly high by closing above $102,400. This potential milestone underscores the ongoing bull market, which continues to gain momentum. The current trajectory of the cryptocurrency suggests that it is approaching a 'price discovery' phase, as highlighted by cryptocurrency trader Jelle. Price discovery implies that buyers and sellers interact in an indefinite range to establish the market price of an asset. A breakthrough above Bitcoin's all-time high of $110,000 would initiate this phase, propelling BTC into unexplored trading ranges with successive higher highs until a new equilibrium between supply and demand is reached.
Cointelegraph also noted that Bitcoin is close to confirming a 'golden cross' on its daily chart, a pattern historically associated with price rallies of 45% to 60%. This development aligns with the likelihood that Bitcoin will reach new highs this month. A monthly close near $110,000 would represent a gain of 15% to 17% for Bitcoin in May, marking its best performance in May since 2019 and significantly surpassing the historical average monthly return of 8% for the month. Bitcoin researcher Axel Adler Jr. has identified a key technical pattern in the current bull cycle of Bitcoin, noting three recent instances of 'compression'—periods of tight price ranges—measured by moving highs/lows over 180 days. This compression often signals an imminent breakout, as evidenced by the 2017 rally when Bitcoin surged from $1,000 to $20,000.
From a liquidation perspective, over $3 billion in leveraged short positions are at risk if the price of Bitcoin rises to $110,000 from $105,000. Conversely, a drop to $94,612 would trigger a similar amount in long liquidations. This bias indicates a higher likelihood that the price will push upward to chase liquidity on the sell side rather than fall lower. Technical analyst Gert van Lagen resonated with this sentiment, stating: 'A liquidation magnet is shining above $107K, ready to vaporize billions in shorts. First, BTC will spike out of fear. Then, it will rise due to liquidations.' This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.$BTC