Analysis of Bitcoin Price: Remaining Barrier Before Reaching Next Record Peak
Bitcoin Breaking Barriers: Last Stand Before $100K
Bitcoin's upswing has regained momentum, shattering the $95K resistance. All eyes are now on the $100K psychological barrier, a formidable hurdle that could either fuel profit-taking or propel us towards new record highs.
technical analysis
Financial Analysis by ShayanMarkets
The Daily Chart
The triumphant break above the $95K resistance, a noteworthy victory for the bulls, indicates the continuation of the bullish trend that commenced after the correction earlier this year. However, the $100K wall looms large, a significant obstacle with historical psychological weight. Its potential latent sell orders, take-profit triggers, and institutional distribution could momentarily stall or reverse the upward surge.
If the bulls successfully crack the $100K barrier, it could ignite a powerful rally, with the immediate target being Bitcoin's all-time high at $109K.
Mosaic of the 4-Hour Chart
At the 4-hour level, Bitcoin initially paused at the $95K resistance, forming a brief consolidation pattern. Subsequent market influx sparked a decisive breakout, affirming the buyers' dominance and the validity of the initial breakout.
The $100K mark now stands as the next daunting challenge, carrying both psychological and technical importance. A failure to conquer this milestone could trigger a profit-taking correction, drawing support from the $90K zone where the 100 and 200-day moving averages offer structural reinforcement.
Alternatively, expect a consolidation phase below $100K, granting the market time to build momentum for a potential breakout towards the $109K ATH.
On-chain Insight by Shayan
The Taker Buy/Sell Ratio, a vital on-chain metric measuring the ratio of market buy orders to sell orders, indicates a vast increase in taker buy volume. This surge suggests aggressive entry at market prices, signaling bullish sentiment among investors and traders. Such behavior often presages strong upward price action, especially when combined with rising open interest and positive price structure.
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[1] Trading View, (May 4, 2022), Bitcoin Price Prediction – May 5, 2022.
[2] CryptoQuant, (May 5, 2022), Trends and Metrics.
[3] Nasdaq, (May 3, 2022), The Pros and Cons of Investing in Bitcoin vs Stocks.
[4] Robert Kiyosaki, (May 3, 2022), Bitcoin Will Surge to $180,000, Says ‘Rich Dad Poor Dad’ Author.
[5] Investopedia, What Affects Bitcoin's Price?.
- The triumphant break above the $95K resistance has sparked a renewed interest in technical analysis for Bitcoin's path towards $100K.
- ShayanMarkets financial analysis suggests that if Bitcoin successfully cracks the $100K barrier, it could fuel a powerful rally towards the all-time high at $109K.
- At the 4-hour level, Bitcoin's pause at the $95K resistance and subsequent breakout indicates a potential consolidation phase below $100K, building momentum for a potential breakout towards the $109K all-time high.
- The Taker Buy/Sell Ratio, an on-chain metric analyzed by Shayan, indicates a surge in taker buy volume, suggesting aggressive entry at market prices and a bullish sentiment among investors and traders.
- Especially when combined with rising open interest and positive price structure, this increase in taker buy volume often presages strong upward price action.
- ShayanMarkets offers valuable insights for crypto trading, inviting readers to join Binance or Bybit for exclusive welcome offers and access to the latest crypto market trends.
