Bitcoin Approaches New All-Time Highs: What You Need to Know

As of October 2023, the cryptocurrency market is buzzing with excitement as Bitcoin (BTC) has surged back above $105,000 during the US trading session. This price movement comes after forming a notable double bottom pattern on the 1-hour chart, indicating that new all-time highs may be just around the corner. In this article, we will explore what this means for investors and the indicators pointing towards further price action.

Bitcoin’s Current Market Position

Analyzing on-chain and technical data reveals that an upward momentum for Bitcoin could lead to new all-time highs. According to data from Glassnode, most Bitcoin wallet cohorts are aggressively accumulating BTC, which bodes well for market confidence. The recent surge in Bitcoin price, coupled with positive accumulation trends, suggests that many investors are banking on a bullish outcome.

Liquidity around the $102,500 mark has shifted markedly, potentially setting the stage for Bitcoin to reach new heights this week.

Bitcoin Fractals Indicate Potential New Record

Bitcoin’s price trajectory currently showcases a range between $106,300 and $100,600, reminiscent of previous patterns observed between $97,900 and $92,700. Within this fractal analysis, three distinct conditions emerge that could influence price actions:

1. Trend Reversals: History suggests that swift reversals can occur at range lows and highs.
2. Double Bottom Formations: Similar to earlier patterns, a double bottom has recently emerged, hinting at bullish momentum.
3. Sustained Price Actions: These formations can consolidate between key levels — specifically, between $103,500 and $105,200 — which could increase the likelihood of breaking above $107,000.

Should Bitcoin manage to hold above the $103,500 level, it may well propel prices higher, possibly into the $120,000 to $130,000 range. However, if this level fails to hold, traders may see a retest of support levels around $102,000, raising uncertainties about Bitcoin’s bullish narrative.

Related: Explore how Bitcoin ignores Moody’s US debt downgrade amidst market fluctuations.

Overcoming Bearish Divergences

Despite the optimism, Bitcoin faces challenges due to emerging bearish divergences noted by analysts. Glassnode has pointed out a significant behavioral shift among Bitcoin investors, with smaller holders accumulating Bitcoin while larger holders exhibit strong accumulation rates as well. The Accumulation Trend Score for these holders shows bullish sentiment, with scores of 0.55 for small holders and even higher scores of 0.9 and 0.85 for larger cohorts.

However, the market isn’t without its warnings. Crypto analyst Bluntz noted a bearish divergence on the daily chart, signaling that while Bitcoin is hitting new price highs, the relative strength index (RSI) is moving lower, indicating waning buying pressure.

Matthew Hyland, another respected Bitcoin analyst, emphasized the urgency for bulls to act, stating, “BTC is now on the clock and probably needs to make a move to $120k-$130k in the coming weeks to make a higher high on the RSI and avoid any weekly bearish divergence from being confirmed.”

Related: Check out our latest discussion on whether the Bitcoin bull market is ‘almost over’ and what traders are thinking about Bitcoin’s price at $105K.

Conclusion: What Lies Ahead for Bitcoin

As Bitcoin approaches potential new all-time highs, market sentiment remains cautiously optimistic. The current accumulation trends suggest an underlying bullish momentum, but the emerging bearish divergences introduce a note of caution for traders and investors alike. Monitoring Bitcoin’s ability to maintain key support levels will be crucial in the coming days.

In this dynamic market, it’s essential for investors to stay informed and continue researching to make informed decisions about their investments in this ever-evolving landscape.

Disclaimer: This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should undertake their own research when making financial decisions.