BTC forms a bullish engulfing pattern with 78% success rate, signaling momentum for new highs.
Liquidity returns to 2022 levels as BTC absorbs $544B since cycle low, boosting market confidence.
Bitcoin faces key resistance at $108K–$110K; a close above $109K could trigger a fresh breakout.
Bitcoin has shown renewed strength after a recent pullback that removed short-term buyers. The asset has now reclaimed crucial price structure and appears to be resuming its upward path. At the time of writing, BTC is trading at $107,074.98, signaling market recovery and renewed investor confidence.
Bullish Reversal Pattern Suggests Momentum Recovery
Bitcoin recorded a 4.34% daily gain on Monday, forming a bullish engulfing candlestick that reversed prior losses. This pattern has historically predicted upward momentum. There have been 19 similar patterns since January 2021.
Out of these, 15 resulted in new local highs, producing a success rate of 78%. This latest pattern came after BTC maintained support above $105,000 for two days, reinforcing the probability of continued price strength.
https://twitter.com/Washigorira/status/1938161547685023945
Technical analysts suggest that a sustained move above $108,000 would break the current resistance range and allow BTC to approach new highs. “A break and a four-hour close above $109K and new all-time highs are on the cards,” said analyst AlphaBTC.
Market Liquidity and Global Flows Support Recovery
Market liquidity conditions have also improved. According to Swissblock data, BTC’s liquidity environment now mirrors levels from late 2022, when Bitcoin doubled within three months. Since its cycle low in November 2022, Bitcoin has absorbed over $544 billion in capital, lifting its realized market cap to $944 billion.
Meanwhile, a weakening U.S. dollar is further contributing to crypto inflows. The dollar index has fallen to 96.98, its lowest since 2022. Analysts expect additional downside in the dollar and predict rate cuts in 2026, which could attract more capital into Bitcoin.
According to an observation by Merlijn The Trader, global liquidity is increasing fast, supporting BTC’s breakout from recent consolidation. As bulls attempt to reclaim the $110,000 level, the market watches for increased spot volume and structural confirmation to signal further upside.
The post Bitcoin Reclaims Structure at $107K, But This Price Level Needs to Break for New Highs appears on Crypto Front News. Visit our website to read more interesting articles about cryptocurrency, blockchain technology, and digital assets.
