- Bitcoin has a bullish structure, and the retracement to $93.4k was a temporary setback.
- The liquidation heatmap showed that BTC would likely be pulled upward by the magnetic zones.
In the early hours of the 8th of May, Bitcoin [BTC] reached the heights of $99.8k, beginning to reverse just below the $100k mark.
It came after the Federal Reserve kept its interest rates unchanged after an optimistic jobs report. The Fed concluded that the economy is “in solid shape” despite the stagflation risks.
Technical analysis showed that BTC could be ready to move toward its all-time high at $108.7k. Metrics showed that a bullish phase was present, but the market was not overheated, making room for further gains.
Bitcoin investors prepare for a breakout beyond $100k
Source: BTC/USDT on TradingView
Three months ago, in early February, Bitcoin slumped below the psychological $100k mark and trended downward to reach $74.5k in the first week of April. The price trend has reversed swiftly since then.
A short-term range formation developed over the past two weeks, but Bitcoin has surged powerfully beyond the local highs at $97k.
The OBV has been in a steady uptrend over the past month, challenging the January highs. This was a strongly bullish sign as it underlined heavy buying pressure.
The MFI was at 70 to show bullish momentum, but has not crossed over into overbought territory. Neither has the indicator formed a bearish divergence, although Thursday’s trading session close could change that.
The 3-month liquidation heatmap showed that a cluster of liquidation levels lay en route to BTC’s bid to a new all-time high. The $100k-$107k region was a magnetic zone that was likely to pull prices higher.
Therefore, traders can expect the ATH to be approached, possibly even surpassed.
The $91.6k-$92.3k was also a liquidity cluster that could be of importance. The proximity and size of the liquidation levels overhead made them a more likely short-term target.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
