Bitcoin's (BTC) price is trading approximately 9.5% above its January 1 open of $87,500. Traders are expressing confidence that BTC's short-term trend is upward as the price approaches a significant level of interest.
Key takeaways from the current market sentiment include:
- •Bitcoin price is consolidating around the $95,000 mark, with bulls facing a major barrier ahead.
- •Technical analysis suggests the formation of an ascending triangle pattern, which could target a BTC price of $113,200.
Bitcoin Price at a Critical "Inflection Point"
Bitcoin's ability to return to a six-figure price hinges on its capacity to overcome resistance at $98,000, which represents the short-term holder (STH) cost basis. This level is a critical point of focus for traders and has not seen a convincing retest recently.
Glassnode analyst Chris Beamish noted, "BTC is approaching a key inflexion point." He added that reclaiming the STH cost basis would signal that recent buyers are back in profit, which is typically a prerequisite for momentum to re-accelerate.
Michael van de Poppe, founder of MN Capital, stated that as long as the BTC/USD pair holds above the 21-day moving average at $91,200, "the trend is up," and it will be a matter of time until it breaks $100,000.
Analyst Mags identified Bitcoin bouncing from a multi-year trendline on the weekly timeframe. She observed, "Bitcoin is bouncing from the long-term trendline support it has been holding since March 2023." Mags further commented, "Each time the price has bounced from this support, we have witnessed a strong run-up."
Historically, the last time Bitcoin bounced off this trendline in October 2023, it experienced a rally of 172%, reaching its previous all-time high of $73,800 on March 14, 2024.
Other analysts are optimistic about the BTC/USD pair pushing higher into the six-figure range, citing several contributing factors. These include whale accumulation, strong institutional demand, and positive on-chain metrics.
Bitcoin's Ascending Triangle Targets $113,000
The BTC/USD pair is currently retesting the horizontal trendline of an ascending triangle, as indicated on the daily chart.
A significant resistance zone is identified between $96,000 (the 100-day Exponential Moving Average) and $99,500 (the 200-day Exponential Moving Average). Bulls must successfully overcome this zone to pave the way for a potential run-up toward the triangle's measured target of $113,200.
Analyst Matthew Hyland noted Bitcoin is consolidating in an "ascending triangle along with confirmed weekly hidden bullish divergence." He added, "Price goes up."
The relative strength index (RSI) has increased to 64 as of Friday, recovering from oversold conditions observed in mid-November.
Daan Crypto Trades commented that Bitcoin is "trading strong but is pretty far from being overbought in the short term." They added, "There's definitely a good amount of room to move higher for now. Just need the bulls to hold the lower timeframe bullish market structures."
Previously, a bullish divergence from the RSI and a MACD cross were identified as classic reversal signals, with bulls targeting $101,000 as the next major level to reclaim for trend confirmation.