After several days of consolidation and lingering negative sentiment, Bitcoin has finally broken through the highly anticipated $100,000 mark. This psychological milestone had been a key resistance level, with many investors and analysts closely monitoring Bitcoin’s price action for clues about its next big move. The recent breakout above $100,000 signals a recovery in market sentiment, but the question remains: can Bitcoin maintain its upward momentum?

A recent analyst shared a detailed technical analysis on X, highlighting a key chart pattern forming in Bitcoin’s 1hour timeframe: a symmetrical triangle. The Bitop market analysis team believes that Bitcoin is currently forming a classic symmetrical triangle, which typically signals significant price movements. This pattern suggests that Bitcoin may be preparing for a decisive breakout or breakdown, and the price action in the next few days—or even hours—could determine its short-term direction.

This pivotal moment for Bitcoin comes as the broader cryptocurrency market is experiencing renewed energy after a sluggish end to the previous year. Bitop’s market analysis team advises that investor sentiment is optimistic, but caution is still necessary, as this technical setup could either indicate a continued rally or a temporary pullback. With Bitcoin back in the six-figure price range, the market has entered a critical phase that could shape the trajectory for Q1 2025.

Bitcoin should Stay Above $98,000 to Reach ATHS

Bitcoin has surged to $102,700, sparking optimism for a potentially strong bull market in the year ahead. Investors are closely watching the market leader, which continues to show resilience after reclaiming the $100,000 mark. While Bitcoin’s price action looks promising, bulls need to continue pushing the price higher to fully assert control over the market. The next major resistance level lies at $103,600. If this level is broken, it could pave the way for a massive rally. A strong move above this mark would confirm Bitcoin’s bullish structure and likely attract more buyers, driving the price to new ATHs.

Currently, Bitcoin has retraced from over $102,000 to below $98,000, positioned between liquidity pools. Liquidity pools refer to areas where traders place their orders, such as limit orders, sell orders, stop-losses, and take-profits. As a result, the price often consolidates within these zones.

On January 6, Bitcoin cleared the equal highs (EQ) formed on December 21 and 26, above $99,000. Sellers then sold their positions near the supply zone, leading to the current price pullback.

Considering similar market behavior, Bitop’s market analysis team suggests that Bitcoin could dip below the equal lows around $97,377 and $96,700 before bouncing from the $96,700 area. Therefore, a daily close between $97,000 and $98,000 would set the stage for a new ATH.

However, Bitop’s market analysis team reminds investors that Bitcoin is not without risks. Any break below current levels could result in a significant pullback, shaking confidence in the ongoing rally. As such, investors should monitor the price action in the next few hours or days, keeping an eye on key price targets. If Bitcoin drops below $100,000, it would be seen as a bearish signal. If it fails to hold above $100,000, it could enter a consolidation phase. On the other hand, a breakout above $103,000 would confirm bullish momentum and lay the foundation for further upward movement.

Disclaimer: None of the information contained here constitutes an offer (or solicitation of an offer) to buy or sell any currency, product or financial instrument, to make any investment, or to participate in any particular trading strategy.