Bitcoin is about to exit its narrow range in the coming days, with the potential to resume historical highs and enter price discovery after several months.
Key points:
Bitcoin is convincing traders that a breakout to the upside is near, with historical highs on the radar.
One projection points to $116,000 next week, definitively taking BTC/USD out of its narrow range.
A quick drop before continuing to rise is one of the possibilities for BTC's price movement at the start of the new week.
Bitcoin $BTC R$ 612,152 reduced volatility to a minimum at the weekly close on May 18, while traders bet on a new breakout.
4-hour BTC/USD chart. Source: Cointelegraph/TradingView
BTC price signals possible classic breakout
Data from Cointelegraph Markets Pro and TradingView showed that the region around $103,000 acted as a price magnet for BTC throughout the weekend.
With little variation up or down, the BTC/USD pair was about to seek liquidity, with zones of $105,000 and $103,000 as targets, according to data from the monitoring platform CoinGlass.
BTC liquidation heat map. Source: CoinGlass
Commenting on the current market structure, traders maintained a broadly optimistic view, anticipating a new test of historical highs and the return of price discovery.
"Next Bitcoin target at the beginning of the week: $116,000," summarized trader Alan in his latest short-term forecast on X.
A chart accompanying the publication highlighted the absence of volatility that marked the behavior of the BTC/USD pair over the past week.
"BTC is consolidating within this converging triangle with decreasing volume, which is a common sign of potential breakout," added Alan.
4-hour BTC/USD chart. Source: Trader Tardigrade/X
Trader Mikybull Crypto described the market structure as an "intraday diamond pattern breakout."
"With the recent high, we have consistently seen a premium in the Coinbase spot market. This is positive and shows that there is solid demand," added trader Daan Crypto Trades, referring to the promising support from U.S. buyers driving Bitcoin back to six-digit territory.
Concerns with unresolved resistance
More conservative outlooks point to a temporary pullback before resuming the uptrend.
"Slow week and Bitcoin still hasn’t managed to break the resistance, which still makes me think this scenario could be at play," suggested trader CrypNuevo.
Daily BTC/USDT chart. Source: CrypNuevo/X
Daan Crypto Trades added that, compared to stocks, Bitcoin has yet to overcome the final resistance.
As reported by Cointelegraph, long-term concerns include a possible total correction of the relief bounce that took the BTC/USD pair from multi-month lows near $75,000 in April.
A move towards $90,000 is also on the radar.
This article does not contain investment advice or recommendations. Every investment and trading decision involves risks, and readers should conduct their own research before making a decision.