BTC Price Faces Resistance Above $110,000 Amidst Accumulation
The relationship between Bitcoin and oil prices, combined with the growing demand from publicly traded companies, suggests that the current price level could be an attractive entry point for investors, with potential gains ranging from 16% to 24% in the coming days.
Bitcoin's price is struggling to break above $110,000, potentially forming a new consolidation area, with the 50-day EMA and $100,000 level providing support, and a break below $100,000 potentially leading to a test of the 200-day EMA.
The cryptocurrency has rallied over the past week, driven by strong US equities performance and encouraging economic data, approaching its record high of $112,000. The break above a flag pattern earlier this week indicates a potential new move higher, with key overhead areas to watch including $112,000 and $137,000, while support levels near $107,000 and $100,000 should be monitored.
Historical data suggests that Bitcoin price surges up to 24% in the days following an oil price increase, as investors rotate into safe-haven assets. A review of the 15-minute price chart shows an inverse relationship between Bitcoin and oil, but a broader time frame reveals a pattern where extreme oil price appreciation coincides with sharp Bitcoin corrections, followed by rebounds. This pattern has occurred three times in the past year, with gains ranging from 16% to 24% within eight days.
The total assets in exchanges have ballooned to $132 billion this month, driven by surging demand from publicly traded companies and growing interest in the cryptocurrency. If the trend holds, Bitcoin's current price near $102,800 could present an attractive entry, potentially targeting a 16% gain to $119,200.
As the market continues to consolidate, accumulation is expected in the meantime, and a catalyst is needed for long-term growth. Breaking above $112,000 could lead to a move to $120,000, but the market needs to break above this resistance level to confirm the uptrend.