BTC’s $100,000 hold suggests going after $110,000 and $120,000 next

Bitcoin has been trading above $100,000 for the past few days and is currently climbing towards the $110,000 mark.

Technical Analysis

By Edris Derakhshi (TradingRage)

The daily chart

On the daily chart, the asset has been making higher highs and lower lows in recent weeks, even after the uptrend slowed following the break above the $90,000 level. Meanwhile, the market failed to break the $100,000 level in early attempts, but finally managed to do so a few days ago.

For now, the $110,000 and $120,000 levels are likely targets for Bitcoin, as the $100,000 level has become a support zone.

The 4 hour chart

The 4-hour chart, however, shows a worrying sign. The market has yet to break above the ascending channel, which can be a reversal pattern if it breaks to the downside. The price is currently testing the upper limit and in case of a bearish rejection, the $100,000 support level will be the first likely destination.

However, an aggressive move towards higher prices could be expected if the market can break the uptrend.

Chain analysis

By Edris Derakhshi (TradingRage)

Exchange reserve

While the price of Bitcoin has been rising in recent weeks, making new all-time highs, investors have also piled in significantly. This in itself could be the main reason for the recent uptrend.

This chart shows the exchange reserve metric, which measures the amount of BTC held in exchange wallets. It’s a pretty useful metric and many analysts use it as a proxy for supply.

As the chart shows, the foreign exchange reserve metric has been falling rapidly in recent weeks, indicating a considerable decrease in supply. If this trend continues, Bitcoin will likely see higher prices in the coming months as the supply and demand equation is clearly in favor of an increase in price.

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