Bitcoin (BTC) surged on Wednesday and continued its upward trajectory on Thursday, demonstrating sustained demand from bullish investors. Marcus Thielen, Head of Research at 10x Research, told Cointelegraph that Bitcoin could potentially rally to $116,000, driven by strong inflows into spot Bitcoin ETFs, uncertainty around the Federal Reserve's policy, and a sharp decline in Bitcoin supply on exchanges.
Will Bitcoin continue breaking past its all-time high, or will prices retrace, leaving aggressive bulls vulnerable? Let’s analyze the charts.
Bitcoin Price Prediction
Bitcoin rebounded from the $105,000 support level and broke above a descending trendline on Wednesday, closing above it. This negates a bearish descending triangle pattern, serving as a positive signal.
👉 Bitcoin’s breakout suggests a bullish continuation
The moving averages are trending upward, and the Relative Strength Index (RSI) remains in positive territory, indicating buyer dominance. The BTC/USDT pair could rise toward the neckline of an inverse head-and-shoulders pattern, where bearish sellers may attempt to push prices down. If the pair doesn’t face significant rejection near this level, an upward breakout becomes more likely. In that case, Bitcoin could target the pattern’s $150,000 objective.
To halt this rally, sellers must quickly push prices below the moving averages. If that happens, the pair could retreat toward $105,000 or even $100,000.
Short-Term Outlook
After breaking above the descending trendline, Bitcoin successfully retested the breakout level, confirming it as support. The upward-sloping moving averages and an RSI above 50 suggest bulls remain in control.
However, bears are unlikely to retreat easily—they may resist near the $110,500–$111,980 zone. If prices reverse from this zone but hold above the moving averages, bullish sentiment could prevail, increasing the likelihood of a breakout above $111,980.
Conversely, a drop below the moving averages would signal renewed bearish dominance.
FAQs
1. What factors are driving Bitcoin’s current rally?
- Spot Bitcoin ETF inflows, Fed policy uncertainty, and reduced exchange supply are key catalysts.
2. What is the significance of the $105,000 support level?
- It acts as a critical rebound zone; losing it could lead to a drop toward $100,000.
3. How does the inverse head-and-shoulders pattern work?
- A breakout above its neckline projects a price target of $150,000.
4. What could trigger a bearish reversal?
- A sustained move below the moving averages may shift control to sellers.
👉 For real-time Bitcoin analysis, explore OKX’s market insights
Disclaimer: The views expressed here are the author’s alone and do not represent financial advice. Always conduct your own research before making investment decisions.