BTC tops $100,000, $120,000 next?

Bitcoin price is poised to decisively break out of the $100,000 resistance level as investors are preparing for a potential rally higher.

Is a new all-time high on the horizon?

Technical Analysis

By Edris Derakhshi (TradingRage)

The daily chart

On the daily chart, the asset has been making highs and lows consistently since retrieving the $52,000 support level. It has also broken several resistance levels and is now well above the $100,000 resistance.

Meanwhile, the RSI is showing clear bullish momentum, and it is likely that the market will finally decisively conquer $100,000 and move towards the psychological resistance zone of $120,000.

The 4 hour chart

The 4-hour chart shows a clearer picture of recent price action as the market has been moving higher within a large ascending channel.

However, with the lower boundary of the pattern remaining intact, the market now opens the way to the higher trend line and potentially the $105,000 level in the near term. A break above the ascending channel is likely to lead to an aggressive pullback higher.

Chain analysis

By Edris Derakhshi (TradingRage)

Coinbase Premium Index

US investors, including US institutions, are primarily responsible for market movements. As a result, analyzing its behavior can be beneficial in making an accurate prediction about short-term market movements.

This chart presents the Bitcoin Coinbase Premium Index, which is a metric that measures the relative buying and selling pressure on Coinbase compared to Binance. Coinbase is primarily used by US traders, while Binance is used worldwide. Therefore, this metric can indicate whether US investors are buying or selling at a higher or lower rate than other parts of the world.

As the chart shows, the Coinbase Premium Index has shown very positive values ​​over the past two months, indicating buying pressure from the US election, which is likely responsible for the recent market rally. As long as this metric shows positive readings, BTC could expect further gains.

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