Amid the intense rally in Bitcoin, the largest cryptocurrency surpassed another milestone of the $108,000 mark. However, the rally could not hold for long as it immediately dropped below $107,000. At the time of writing, the cryptocurrency is trading at around $106,884.43 with a marginal drop of 0.4% in 1 hour, according to CoinMarketCap.
Will Bitcoin Surpass $110,000 Mark?
According to some crypto analysts, Bitcoin is now approaching the $110,000 threshold. On the daily timeframe, Bitcoin has been consistently forming higher highs and higher lows in recent weeks.
Initially, the $100,000 level acted as a strong resistance, with the market failing to break through on several occasions. However, a breakthrough was achieved a few days ago, turning $100,000 into a support zone.
Currently, Bitcoin appears expected to target the $110,000 and $120,000 levels. On the 4-hour chart, though, a potential red flag emerges, the price remains confined within an ascending channel. If the channel’s lower boundary is breached, it could signal a bearish reversal, with $100,000 likely serving as the immediate support level. Conversely, breaking above the channel could trigger a sharp rally toward higher price levels.
As Bitcoin continues to set new all-time highs, investors have been actively accumulating the cryptocurrency. This accumulation trend is a major driver behind the recent price surge.
The exchange reserve metric, which tracks the amount of Bitcoin held in the exchange wallet, shows its behavior. This metric, often used as a proxy for supply, has been declining rapidly in recent weeks.
Also Read: European MP Calls For Strategic Bitcoin Reserve Similar to US
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