Bitcoin Fractal Analysis: $110K+ by Week’s End?

Recent Bitcoin price action shows a potential for significant gains. Onchain data and technical analysis suggest a strong possibility of new all-time highs above $110,000 before the week concludes. Let’s dive into the details.

Key Insights:

• Bitcoin’s on-chain metrics and technical indicators point toward imminent new all-time highs.
• Data from Glassnode reveals substantial Bitcoin accumulation across most wallet cohorts.
• However, a bearish divergence on the daily timeframe suggests waning momentum, casting doubt on a rapid surge to $120,000-$130,000.

Bitcoin (BTC) surged past $105,000 during the US trading session, following a double bottom pattern on the 1-hour chart. Liquidity around the $102,500 level was absorbed, potentially setting the stage for further price increases this week.

Fractal Patterns and Price Predictions

Bitcoin’s current trading range, between $106,300 and $100,600, mirrors a previous range ($97,900-$92,700). This fractal suggests a potential for significant upside:

• Range highs and lows have historically led to immediate trend reversals.
• A double bottom formed after range highs were established ($97,900 and $107,144).
• The double bottom formation occurred above range lows, clearing internal liquidity levels.

Bitcoin fractal analysis. Source: TradingView

Over the next 24 hours, Bitcoin might consolidate between $103,500 and $105,200, echoing its previous sideways movement. If this pattern repeats, a breakout above $107,000, potentially reaching over $110,000, is highly probable. Conversely, failure to hold $103,500 could trigger a retest of $102,000 support.

Bearish Divergence and Accumulation

Glassnode data highlights strong accumulation across various Bitcoin investor cohorts, indicating growing market confidence. However, a bearish divergence noted by analyst Bluntz on the daily chart tempers the bullish outlook. This divergence, where price makes higher highs but the RSI makes lower highs, signals weakening momentum.

Bitcoin accumulation trend score. Source: Glassnode

Analyst Matthew Hyland emphasizes the need for a decisive move to $120,000-$130,000 to confirm bullish momentum and avoid a confirmed bearish divergence.

Disclaimer: This content is for informational purposes only and does not constitute financial advice.