This week, Bitcoin achieved a remarkable milestone by breaking through its all-time highs, reaching $112,000 and maintaining its position above the critical psychological barrier of $100,000. This breakthrough signifies a major shift in market dynamics, indicating that bullish sentiment is back in full force. After weeks of consistent upward movement and bullish consolidation, the market has reignited optimism among traders as BTC enters price discovery once again.
The recent breakout wasn’t merely a technical occurrence; it was substantiated by strong positioning in derivatives markets. Data from Coinglass reveals a significant cluster of liquidity around the $105,700 level on Bitcoin’s weekly liquidation heatmap. This region may act as a short-term magnet, with many traders anticipating a brief sweep into this zone before BTC continues its upward ascent.
The current environment strongly favors the bulls, as both technical indicators and on-chain data align to support further price increases. As long as Bitcoin sustains its position above $100K and any dips remain shallow, the path of least resistance appears to be toward higher price levels. With liquidity, momentum, and macro sentiment all aligning favorably, the upcoming weeks may prove pivotal as Bitcoin sets the pace for the broader market, possibly signaling the onset of a full-scale bullish phase.
Bitcoin’s Robust Performance Amidst Market Challenges
In the previous week, Bitcoin posted a bullish performance by reaching the new all-time high of $112,000, only to pull back slightly yet remain above the crucial $100,000 threshold. Despite this encouraging price action, market sentiment has not fully turned euphoric. A cautiously bullish tone persists as macroeconomic conditions remain tense, characterized by elevated US Treasury yields and increasing global trade instability—factors that are weighing on overall risk assets.
Unlike many alternative cryptocurrencies, which are still lagging well behind their previous highs, Bitcoin is displaying resilience in this challenging environment. Investors seem to be favoring BTC as a safe haven, reinforcing its role as a macro hedge during uncertain economic conditions.
Prominent analyst Ted Pillows has contributed to this discussion by underscoring data from Coinglass, indicating significant liquidity around the $105,700 mark. Pillows notes that this liquidity could serve as an attractive target, suggesting that a quick sweep is feasible before Bitcoin resumes its upward momentum.
“Liquidity at $105K is thick. A dip into that area could clear out late longs before the next leg higher,” he stated.
As Bitcoin defends its key price levels and market sentiment remains cautiously optimistic, the current setup appears favorable for continuation; yet, volatility is not off the table. If Bitcoin successfully maintains the $100K–$105K range and reclaims the $110K level, an expedited push toward new highs could be on the horizon. For now, bulls hold the reins, though traders remain vigilant amid ongoing global market uncertainties.
Bitcoin’s Performance Above Key Moving Averages
Currently, Bitcoin is trading at $108,249 on a 4-hour chart following its strong surge to $112,000 earlier in the week. The chart shows BTC consolidating above several crucial moving averages, including the 34 EMA ($108,046), 50 SMA ($106,840), and 100 SMA ($105,109), all trending upward. These areas now act as dynamic support, preserving a bullish short-term outlook as long as the price remains above them.
Despite the recent rejection near $112K, Bitcoin has managed to avoid severe sell-offs, continuing to respect the mid-range levels established during the breakout. The $103,600 level serves as crucial horizontal support and previously acted as a resistance ceiling, now offering a solid foundation should any deeper corrections occur.
Current volume has decreased during this pullback, suggesting that selling pressure may be more corrective than indicative of a trend reversal. If bullish momentum can be recaptured above $106K and a sustained rally above $110K occurs, a retest of recent highs could materialize sooner than anticipated.
In conclusion, the 4-hour trend remains intact, keeping the focus on whether Bitcoin can maintain its position above the clustered support levels, continue building a foundation, and pave the way for the next upward leg.
Featured image from Dall-E, chart from TradingView
