Bitcoin has surged past the $100,000 mark for the first time in months, signaling a shift in market sentiment that favors buyers. The price climb is supported by strong technical signals and positive on-chain data, suggesting continued upward momentum.
Technical Analysis: Daily Chart
On the daily chart, Bitcoin has broken through resistance at $100,000 and is currently hovering around $103,000. This breakout followed a clean reclaiming of both the 100-day and 200-day moving averages, as well as a retest of the established ascending trendline.
The RSI sits firmly in overbought territory at above 75%, indicating significant bullish momentum but also potentially signaling for a short-term cooldown. If this breakout holds, the next resistance level is expected to be around $108,000, while $99,000 will act as a new key support.
Technical Analysis: 4-Hour Chart
The 4-hour chart reveals Bitcoin’s escape from a descending wedge formation that had been building for several days. Price broke above the $97,000 – $98,000 range and surged towards $103,000. Momentum indicators like RSI corroborate this strength but now show early signs of exhaustion, suggesting a possible short-term pullback. However, overall structure favors further upside unless $96,000-$97,000 fails to hold.
On-Chain Analysis: Exchange Reserves
An on-chain analysis reveals declining exchange reserves, reaching a multi-year low. This decline reinforces the bullish thesis for long-term accumulation; a smaller amount of BTC held on exchanges typically signals greater confidence in the coin’s value and less pressure to sell.
The trend of shrinking exchange balances strengthens the current price momentum and provides confidence in the sustainability of this rally, even if short-term pullbacks occur.