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After setting a new all-time high, Bitcoin is poised for a breakout rally with a target of $110K this December.
The buying pressure in Bitcoin has significantly surged overnight, pushing the price to an all-time high of $106,533. Amid this strong rally, BTC registered a notable recovery, with a 3% surge on Sunday.
As the residual momentum hints at a potential breakout from its current channel, Bitcoin finds itself at a crossroads. Will the price push beyond $110,000, or will resistance cause a pullback?
Bitcoin Price Analysis
With a streak of bullish candles in the 4-hour chart, the BTC price tests the rising channel’s resistance. The boost in trend momentum comes after the breakout of an inverted head-and-shoulder pattern.
This breakout resulted in a massive bullish engulfing candle, driving the 24-hour high above $106,000. However, despite the surge in demand, the overhead supply led to a swift bearish reversal, delaying a full bullish breakout.
Currently, Bitcoin is trading at $104,842 after failing to close above the resistance trendline. Along with the trendline, the 38.20% Fibonacci level at $105,587 remains a critical resistance point.
Additionally, a modest 0.27% recovery over the past four hours brings Bitcoin closer to this crucial resistance. The exponential moving averages (EMAs) remain positively aligned, supporting the likelihood of a breakout rally.
Furthermore, the MACD and signal lines maintain a bullish trend, with new positive histograms indicating a continuation of upward momentum. As a result, technical indicators suggest a bullish bias for Bitcoin.
BTC Price Targets
If Bitcoin closes strongly above the 38.20% Fibonacci level on the 4-hour chart, the price will likely surge, potentially setting a new all-time high. Additionally, with the release of trapped momentum from the rising channel, the immediate target for Bitcoin is the 50% Fibonacci level at $110,375.
However, if the bulls fail to break through the crucial Fibonacci resistance, a downside risk of 2.5% could materialize. In that case, the key support trendline, combined with the 20-EMA at $102,264, could offer the next potential reversal point.