Bitcoin reaches a crucial battlefield at $104,000, but buyers are starting to struggle with the upward momentum as a new all-time high unexpectedly comes into reach.
Key points:
Bitcoin is at its highest since January, and traders are paying attention to critical levels to monitor the next developments.
After reaching $104,000, the BTC/USD pair is adjusting to establish support, but the fate of the $100,000 level is a concern for market participants.
The current price action represents a crucial battlefield, measured from this year's low of $75,000.
BTC price rises due to attention-grabbing 'headlines'
According to data from Cointelegraph Markets Pro and TradingView, just $6,000 away from the new all-time high, the price action of BTC has stunned the market with a surge of 10% in just a few days.
The price surge of BTC has surprised many, but the long-term outlook shows where the toughest battleground is.
Trader Skew mentioned the momentum for this move in a post on X on May 8, stating: "Because this current momentum is primarily driven by headlines, this puts the market into a crucial and decisive trading day."
Skew refers to a common theme unifying BTC price volatility in recent weeks and months. Bitcoin and risk assets have become extremely sensitive to headlines and even social media posts related to U.S. President Donald Trump and his trade tariffs.
The latest event related to the trade deal between the United States and the United Kingdom, but how long this optimism can last remains a mystery.
Skew continued: “I am sure the market is hoping this will have a positive impact to secure trade deals for other major trade participants like the EU and China.”
Another post on X mentioned that what is essential now is "passive flow", large volumes to support the newly considered levels and turn them into strong support.
Skew added:
“Passive inflows will play a crucial role in accepting higher value, especially after a large buying surge in the market that pushed prices above $100,000.”
Fibonacci levels highlight the crucial battle of the bull market
The current local high of BTC/USD has surpassed the $104,000 mark, and looking more broadly, Fibonacci retracement analysis shows that the price is currently in a crucial zone.
“$BTC is at the final technical level to overcome before reaching a new ATH,” commentator Patric H. announced in a post on X.
“Bitcoin has clearly surpassed the FIB 1.618 level and is currently trading at a high volume-area (VAH) + weak resistance trend line.”
The accompanying chart provides important Fibonacci levels measured from Bitcoin's local low of around $75,000.
Another trading account, Kingpin Crypto, revealed a notable breakout attempt towards the 1.618 Fibonacci level on the monthly chart.
“The rejection and pullback from 1.618 lasted a bit longer into May. However, it can't be denied how well the fib level has played out,” it said.
Liquidation is waiting
A cautionary note regarding the liquidity of the order book at the current level.
Related article: How high can Bitcoin price rise?
The latest data from monitoring source CoinGlass shows a sharp price drop at bid levels just below $103,000, with most interest concentrated below $100,000.
However, on the positive side, there is still little resistance as most liquidations have occurred when prices returned to six figures.
“There is much less concentrated short liquidity above,” trader TheKingfisher confirmed on X.
“This notable imbalance makes the liquidation zone a potential key area to watch for volatility or price attraction.”
