Bitcoin is making efforts to enter a new ‘strength’ phase after weeks of trading between $90,000 and $86,000. Despite positive technical signs, traders are divided over whether the upcoming $100,000 could signify a new bull phase or simply another bear trend.
Key Insights:
- An indicator for Bitcoin has turned bullish as it recovers above $90,000.
- Momentum and channel positioning indicate a potential ongoing trend, though overbought risks linger.
- Ongoing accumulation is depleting supply, but opinions vary on whether hitting $100,000 represents expansion or exhaustion.
Market Signals Indicate Potential for Bull Market as Resistance Approaches
According to Bitcoin analyst Axel Adler Jr, a vital indicator has shifted to a bullish stance, combining factors like channel position and moving average trends. Previously, this signal was below -0.3, reflecting bearish pressure.
This alteration was observed when the indicator crossed above 0, representing increased market strength. It surged to +0.73 by Sunday, during which Bitcoin rose from about $87,500 to $91,400.
“Structural indicators are signaling a synchronized transition from a phase of weakness into a phase of strength.”
The indicator traditionally remains above +0.5 correlating with an upward trajectory. The significant test now is whether it can remain above 0 as Bitcoin challenges resistance around $96,000, as dropping below could signal a false breakout.
Continuous Accumulation Despite Bull Trap Concerns
Data from CryptoQuant confirms consistent supply absorption. Currently, Bitcoin held by accumulating addresses has reached a record 2.28 million BTC, valued at $211 billion.
Retail accumulation is slowly increasing, hinting at a growing presence in the market without signs of a late-cycle bubble.
This article does not serve as investment advice or recommendations. Each trading decision carries risks, and readers should engage in their own analysis.
