Bitcoin (BTC) has recently surpassed the crucial resistance level of $96,000, confirming expectations outlined by the Long-Term Power Law model. This breakthrough paves the way for a potential price exploration towards $120,000.
Currently, Bitcoin is being traded at $98,633.53, indicating a 0.50% increase over the last 24 hours.
It is crucial for Bitcoin to maintain levels above $96,000 as a drop below this mark might trigger selling pressure in specific regions. Will the breakout of Bitcoin lead to a broader uptrend?
Confirmation of Bullish Momentum through Technical Indicators
Bitcoin’s price movement reveals a robust bullish trend. With the RSI standing at 79, there is a notable influx of buying activity currently, albeit nearing the overbought zone.
Moreover, the Fibonacci retracement levels indicate that Bitcoin is firmly positioned above the critical retracement zone of 0.786 at $85,000, reinforcing its upward trajectory.
If Bitcoin remains well-supported above $96,000, the next significant Fibonacci extension at $120,000 could be achievable. Nevertheless, there is a lingering possibility of a price pullback.
A dip below the $96,000 mark could undermine the ongoing rally, leading to potential consolidation or corrections towards lower price levels.
Heightened Buying Pressure Propels Bitcoin
There has been a significant increase in buying pressure for Bitcoin across prominent exchanges, with the Taker Buy/Sell Ratio climbing to 1.03. This trend underscores the continual dominance of buyers over sellers, further boosting the breakout past $96,000.
Leading platforms such as Binance, OKX, and Bybit have witnessed increased trading activity, indicating a growing interest from both institutional and retail investors.
This surge in buying interest contributes to sustaining Bitcoin’s uptrend, reinforcing its stability above crucial support levels and making $120,000 a plausible target.
Decline in Exchange Reserves Supports Bullish Sentiment
In conjunction with the intensified buying pressure, Bitcoin’s reserves on exchanges have decreased by 0.29% within the last 24 hours, amounting to 2.509 million BTC at present.
This reduction signifies a rise in withdrawals to cold wallets, indicating confidence among long-term investors and a decrease in immediate selling pressures.
Lower exchange reserves typically indicate a constrained supply, which can amplify upward movements in price.
Strong Network Activity Reinforces the Case for Bitcoin’s Bullish Trajectory
Looking ahead, there has been a 1% increase in Active Addresses, totaling 10,703 in the past 24 hours, showcasing heightened user engagement.
Similarly, transaction counts have grown by 0.79% to 540,000, indicating a rise in utility. This synchronization of robust buying interest and healthy network participation strengthens the positive outlook for Bitcoin.
The breakout of Bitcoin above $96,000 signifies a significant milestone, backed by robust technical and on-chain indicators. The current bullish momentum appears sustainable, with $120,000 emerging as the next prominent target.
Therefore, as Bitcoin maintains levels above $96,000, the uptrend is anticipated to persist, maintaining the overarching bullish sentiment.