Is Bitcoin on the Verge of a $110,000 Breakthrough? Insights from Analysts

After surpassing the $100,000 milestone, Bitcoin (BTC) experienced its largest retrace in the past month before bouncing back. Analysts are closely monitoring key levels that could dictate the next phase of BTC’s rally.

Bitcoin Rally To Continue Above $100,000

On Thursday, Bitcoin hit its latest all-time high (ATH) of $103,600, marking an 8% daily increase. The largest cryptocurrency by market capitalization broke out of a one-month bullish pennant, crossing the $100,000 barrier for the first time in history.

Following this impressive surge, BTC retraced to the $98,000 mark and briefly dipped to the $90,000 support zone, representing a 13% correction. This marked the largest drop since the post-election rally began a month ago, resulting in around $1 billion in liquidations.

However, Bitcoin quickly regained the $97,000-$98,000 price range, followed by a retest of the previous ATH around $99,000 on Friday morning. Renowned crypto analyst Ali Martinez indicated that BTC’s rally seems dependent on a critical support level.

Martinez identified the most significant support zone for Bitcoin at $96,870, where over 1.45 million addresses bought 1.42 million BTC. He stated, “As long as this demand zone holds, there is a good probability that BTC will continue marching higher.”

Additionally, he highlighted that the local Bitcoin top is not yet established, usually occurring around the Short-Term Holder Cost Basis +1 standard deviation, which stood at $112,926 at the time of reporting. This suggests BTC could potentially rise another 13% before facing its first major retrace.

Will BTC Repeat Its 2017 Move?

Crypto analyst Jelle noted that Bitcoin is closely mirroring the Q4 2023 fractal, despite the recent dip. He believes that now that the flagship crypto has “taken out the liquidity on both sides,” it is poised to push back towards the $100,000 milestone.

Jelle predicts that BTC will range until Christmas, expecting a “true breakout” to occur if it continues following last year’s trajectory. He also mentioned that the recent $100,000 candle resembles BTC’s performance when it first surpassed the $10,000 mark.

In November 2017, Bitcoin rallied to $10,000 for the first time, reaching the $11,000 range before dropping to $8,500. The following day, it recovered and retested the $10,000 barrier, turning it into support on the third day. Subsequently, Bitcoin surged around 90% over the next few weeks, hitting the $19,000 ATH of 2017.

Based on this historical context, Jelle suggests that the recent price volatility is “totally normal” and that a significant upward movement is imminent if history repeats itself. After recovering, BTC effectively retested the bullish pennant, setting the stage for a six-figure price “once and for all,” with targets set towards $130,000.

As of this writing, Bitcoin trades at $101,050, reflecting a 4.7% increase over the weekly timeframe.