Bitcoin Breaks Consolidation: $110,000 Target in Sight?
Bitcoin has spent the last few days consolidating between $103,000 and $104,500, following a strong rally above the $100,000 mark. However, recent price action suggests this consolidation may be over.
A closer look at the daily candlestick chart reveals a potential impulsive wave starting around $103,000. This could signal the beginning of a fresh upward trend, pushing Bitcoin towards the next psychological resistance level: $110,000.
Analyst Predicts Significant Upside
Crypto analyst CrediBULL, in a recent X post, highlighted a long trade setup based on Bitcoin’s breakout from its three-day consolidation. He points to an early impulse from $103,000 as a potential start of a much larger upward move. This prediction relies on the price maintaining its current structure and avoiding a relapse to the $101,000 – $102,000 demand zone.
CrediBULL’s analysis reveals a favorable reward-to-risk ratio exceeding 5:1, with a price target of $110,660. The trade’s invalidation point is clearly defined, providing a tight stop-loss level. Success here would indicate a significant move toward new all-time highs.
Conversely, if the price falls below the origin of the impulse, support would likely reside around the $101,800 local demand zone.
$110,000: A Realistic Target?
CrediBULL estimates a 20% probability of the $110,000 target being reached. This is a noteworthy probability, given the volatility inherent in the cryptocurrency market. The recent surge past $105,000, reaching an intraday high of $105,503, further bolsters this prediction, suggesting the consolidation phase may indeed be over.
A move to $110,660 would represent approximately a 6% increase from the current price, with downside risk limited below $103,000. At the time of writing, Bitcoin is trading around $104,428.
Disclaimer: This analysis is for informational purposes only and does not constitute financial advice. Investing in cryptocurrencies carries significant risk.
Source: TradingView.com, X (formerly Twitter)