Bitcoin Price Analysis: BTC Remains Strong Above $100K, Targeting $110K and $120K Next
Bitcoin continues to trade above $100K, heading towards $110K and potentially $120K. The daily chart indicates a bullish trend, yet the 4-hour chart warns of possible bearish reversals. Decreasing exchange reserves signal a reduction in supply that could contribute to rising prices in the near future.
Bitcoin has recently maintained a trading range above $100K and is currently showing upward momentum as it approaches the next milestone of $110K. In the daily chart analysis conducted by Edris Derakhshi of TradingRage, it becomes evident that the cryptocurrency has been establishing higher highs and lows, marking a persistent uptrend following a breach over the $90K threshold. Following some initial struggles, the market has successfully settled above the $100K level, which has now been reinforced as a support zone.
The current market dynamics suggest that Bitcoin is in a pivotal moment, with the next significant targets established at $110K and $120K. Technical analysis reveals mixed signals; while the daily chart shows a positive trend, the 4-hour chart raises concerns about the potential for a bearish reversal. The exchange reserve data, an important on-chain analysis metric, indicates that the supply of Bitcoin is decreasing sharply, which may imply a price increase due to heightened demand in the wake of restricted supply.
In summary, Bitcoin’s recent trade above $100K marks a significant milestone, with targets of $110K and $120K potentially within reach. However, traders should exercise caution as bearish signals appear on shorter timeframes. Furthermore, a reduction in exchange reserves suggests a tightening supply, which may further support price advancement should the upward momentum continue.
Original Source: cryptopotato.com
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