According to Cointelegraph, Bitcoin is on the brink of achieving its highest monthly candle close in history, with just 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 cryptocurrency's current trajectory suggests it is nearing a 'price discovery' phase, as highlighted by crypto trader Jelle. Price discovery involves buyers and sellers interacting at an undefined 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 an uncharted trading range 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 45% to 60% price rallies. This development aligns with the likelihood of Bitcoin reaching new highs this month. A monthly close near $110,000 would represent a 15% to 17% gain for Bitcoin in May, marking its strongest May performance 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 Bitcoin’s current bull cycle, pointing to three recent instances of 'compression'—periods of tightening price ranges—measured by rolling maximum/minimum over 180 days. This compression often signals an impending breakout, as evidenced by the 2017 rally when Bitcoin surged from $1,000 to $20,000.

From a liquidation perspective, over $3 billion in short leveraged positions are at risk if Bitcoin's price climbs to $110,000 from $105,000. Conversely, a drop to $94,612 would trigger a similar amount in long liquidations. This skew indicates a higher probability of the price pushing upward to chase liquidity on the sell-side rather than dropping lower. #MerlinTradingCompetition #GENIUSAct