Bitcoin eyes $120K as $96K resistance flips: Is the bull run here?

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  • Bitcoin broke past the $96K resistance, signaling strong bullish momentum toward $120K.
  • Rising active addresses and declining exchange reserves reinforced the rally.

As a seasoned analyst with over two decades of market observation under my belt, I can confidently say that Bitcoin’s recent surge past the $96K resistance is a significant milestone. It aligns with predictions from the Long-Term Power Law model, indicating potential price discovery toward $120K.

Bitcoin (BTC) has just broken through a crucial barrier at $96K, following projections from the Long-Term Power Law model. This achievement paves the way for possible future value exploration up to $120K.

At press time, Bitcoin was trading at $98,633.53, up 0.50% in the last 24 hours. 

Nevertheless, maintaining values over $96,000 is crucial, since dropping below this point might trigger localized selling. Could Bitcoin’s surge initiate a wider bullish trend?

Technical signals confirm bullish momentum

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At the moment, Bitcoin’s market behavior indicates a robust upward trend. The Relative Strength Index (RSI) stands at 79, indicating intense buying activity currently occurring. However, it’s worth noting that this level is approaching the zone where the market might be considered overbought.

Additionally, Bitcoin appeared to be firmly positioned above the significant 0.786 Fibonacci retracement level at around $85K, suggesting it was maintaining its bullish trend.

If $96K continues as a strong foundation, the upcoming Fibonacci extension could potentially be attained around $120K. Yet, it’s important to note that there’s still a possibility for a pullback.

Significantly, if the price falls below $96,000, it might weaken the current upward trend, potentially leading to a period of consolidation or adjustment towards lower prices.

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Increased buying pressure fuels BTC

On significant trading platforms, the demand for Bitcoin is growing significantly, as indicated by the Taker Buy/Sell Ratio rising to 1.03. This means that more people are buying than selling Bitcoin, which has been a recurring pattern. Consequently, this strong buyer activity contributes to the ongoing rise of Bitcoin price above $96K.

These trading platforms such as Binance, OKX, and Bybit have seen a surge in activity, indicating a rising interest from both institutional and individual investors.

The increased demand for Bitcoin keeps fueling its upward trend, strengthening its stance over crucial support thresholds, with the possibility of reaching $120K becoming increasingly plausible.

Supply on exchanges continues to decline

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Beyond a surge in demand, it’s worth noting that the Bitcoin reserve holdings have decreased by approximately 0.29% within the last day, currently standing at roughly 2.509 million Bitcoins as we speak.

This decrease is due to more funds being moved to secure storage (cold wallets), which suggests that long-term investors are confident and less inclined to sell immediately, thereby reducing the current pressure to sell.

Lower exchange reserves often lead to tighter supply, which can amplify upward price movements.

BTC network activity bolsters bullish case

Looking ahead, AMBCrypto noted a 1% increase in active addresses, totaling approximately 10,703 in the past 24 hours, signifying an uptick in user engagement.

In the same vein, we see a 0.79% increase in transactions reaching 540,000, suggesting increased usefulness. The concurrent surge in purchase activity and strong network action bolsters the bullish storyline for Bitcoin.

Read Bitcoin’s [BTC] Price Prediction 2024-25

Reaching beyond $96,000 for Bitcoin marks a significant milestone, backed by robust technical analysis and blockchain indicators. This bullish trend seems resilient, suggesting that the next major objective could be around $120,000.

In other words, if Bitcoin stays above $96K, it’s probable that the upward trend will persist, maintaining the overall bullish market condition.

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2024-11-24 09:12