Bitcoin (BTC) is showing promising signs of potential new all-time highs as onchain and technical data point towards a bullish trend. Glassnode data reveals that most Bitcoin wallet cohorts are accumulating BTC, indicating growing market confidence. However, there are some cautionary signals to consider before expecting a significant rally.

The recent rally saw Bitcoin's price surging back above $105,000, following the formation of a double bottom pattern on the 1-hour chart. This move was supported by the sweeping of available liquidity around the $102,500 zone, setting the stage for a potential push towards new highs in the near future.

Analyzing Bitcoin's current price range between $106,300 and $100,600, it mirrors a similar setup to a previous range between $97,900 and $92,700. The price action pattern suggests that Bitcoin could consolidate between $103,500 and $105,200 over the next 24 hours, with the possibility of breaking above $107,000 and reaching new highs above $110,000 in the coming week.

However, there are concerns regarding a daily bearish divergence, signaling fading momentum that could hinder Bitcoin's rally. While Glassnode data indicates strong accumulation among larger cohorts, a bearish divergence on the daily chart, highlighted by analysts such as Bluntz and Matthew Hyland, raises doubts about the immediate potential for new all-time highs. A bearish divergence occurs when the price forms a higher high while the relative strength index (RSI) indicator forms a higher low, indicating weakening buying pressure.

To maintain bullish momentum, analysts suggest that Bitcoin needs to make a move towards the $120,000 to $130,000 range in the coming weeks to avoid potential bearish signals. The accumulation trend score data from Glassnode, transitioning from distribution to accumulation, presents a positive outlook for Bitcoin's price rallies historically.

While the market is showing signs of optimism, it is essential to approach investment decisions with caution and conduct thorough research. Every investment and trading move involves risk, and investors should be mindful of the potential market fluctuations and technical indicators to make informed decisions.

In conclusion, Bitcoin's price movements suggest a potential for new highs, but with cautionary signals like the daily bearish divergence, investors should closely monitor the market dynamics and be prepared for various scenarios in the coming days.

Source: https://cointelegraph.com/news/bitcoin-fractal-analysis-forecasts-new-all-time-highs-above-110k-by-end-of-week?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound