Bitcoin has once again shattered records, reaching a new all-time high of over $106,000. This overnight surge has propelled the cryptocurrency market to a total valuation of $3.73 trillion. The question on everyone’s lips is: Will this bullish momentum propel Bitcoin to $110,000 before the year ends?
Technical Analysis: A Bullish Outlook
A closer look at the 4-hour chart reveals a bullish breakout from a rising channel pattern. This pattern indicates strong buying pressure and has led to the formation of a new all-time high. Additionally, the inverted head-and-shoulders pattern has been successfully completed, further bolstering the bullish sentiment.
However, the current price action suggests a potential roadblock at the 50% Fibonacci level of $106,912. This level has acted as a significant resistance point, hindering further price appreciation.
The MACD and signal lines remain in positive alignment, indicating sustained buying interest. This bullish indicator suggests that the current uptrend may continue.
Institutional Buying Fuels the Rally
The ongoing institutional buying spree has played a significant role in driving Bitcoin’s price higher. U.S. spot Bitcoin ETFs have witnessed a net daily inflow of $636.85 million, with BlackRock and Fidelity leading the charge. This influx of institutional capital highlights the growing confidence in Bitcoin’s long-term potential.
MicroStrategy’s recent $1.5 billion Bitcoin purchase further fueled the rally, contributing to the cryptocurrency’s surge to $107,000.
Price Targets and Outlook
If Bitcoin manages to break above the 50% Fibonacci level, the next target lies at $110,730, which aligns with the 67.80% Fibonacci level. A successful breach of this level could open the door to even higher price targets.
However, a bearish reversal could lead to a retest of the 38.20% Fibonacci level at $103,093.
Also Read: Coinbase Faces $1B Lawsuit Over Alleged Monopoly in Wrapped Bitcoin Market
While the current market sentiment remains overwhelmingly bullish, it is crucial to exercise caution and consider potential risks. The cryptocurrency market is highly volatile, and price swings can be significant. Investors should conduct thorough research and consider their risk tolerance before making any investment decisions.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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