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Bitcoin could break through $110,000 this week, driven by several key signals indicating a rapid rise. This crucial threshold rekindles hopes and tensions, where every investor movement will determine if the market soars or faces a sharp pullback. New ATH underway for BTC?
In brief
- Bitcoin could surpass $110,000 this week, supported by a bullish fractal pattern and strong on-chain accumulation.
- A bearish divergence of the RSI and key resistances could slow bitcoin’s rise this week.
- The psychological threshold of $110,000 crystallizes hopes and fears, making the next phase of the market uncertain.
Bitcoin aims for $110,000 this week
Bitcoin (BTC) shows favorable technical and fundamental signs that suggest a rapid progression towards the symbolic threshold of $110,000. Several key indicators, both chart-based and on-chain, support this promising scenario:
Bullish fractal pattern
A current fractal pattern replicates a price scheme that previously preceded significant bitcoin rallies. The recent consolidation between $102,000 and $105,000 swept away liquidity, creating a solid base for a future bullish push.
On-chain accumulation data
Data shows that most holders are strengthening their positions:
- Small wallets (<1 BTC) are shifting from distribution to slight accumulation (~0.55);
- Medium wallets (100-1,000 BTC) show high accumulation (~0.9);
- Very large wallets (1,000-10,000 BTC) are also accumulating (~0.85).
This widespread bitcoin accumulation reflects growing confidence in the continuation of the bullish trend. Moreover, the recent break above resistance near $105,000 validates the positive momentum. In addition, Ryan Lee, Chief Analyst at Bitget Research, recently identified a golden cross, a classic technical signal often announcing a prolonged bullish phase.
The BTC chart shows a potential golden cross — where the 50-day moving average crosses above the 200-day moving average — a few weeks after a failed death cross in April. Historically, this setup reflects the late 2024 surge from $70,000 to $100,000 and indicates bullish momentum heading towards the $110,000 to $125,000 zone.
These technical and fundamental factors support the idea of progression toward, or even beyond, $110,000 for bitcoin this week.
Factors likely to influence BTC’s trajectory
Several technical signals call for caution despite bitcoin’s bullish outlook. On the daily chart, the RSI (Relative Strength Index) reveals a notable bearish divergence: while the price reached nearly $107,000, the RSI caps around 65, forming a lower relative high compared to its previous peak near 70. This gap suggests weakening buying momentum.
If the daily candle closes below this level, the divergence will be confirmed, strengthening short-term selling pressure. For the bullish trend to continue, BTC must quickly break through the $120,000 to $130,000 zone, thereby avoiding confirmation of divergence on the weekly scale.
Additionally, some fundamental factors moderate optimism:
- The segment of small investors holding between 1 and 10 bitcoins remains net sellers, limiting buying momentum;
- A break below support at $103,500 would invalidate the bullish fractal pattern and could trigger a return below $102,000;
- Finally, macroeconomic uncertainties and volatility in traditional markets could slow BTC’s progression in the coming days.
Investor psychology facing the $110,000 threshold
The $110,000 threshold represents much more than a simple technical barrier for bitcoin: it crystallizes the hopes and fears of the market. Many investors feel the excitement of a new record, but also the fear of massive profit-taking. This psychological tension can provoke abrupt movements, swinging between euphoria and retreat.
If confidence remains strong, a high-volume breakout could trigger a buying wave fueled by a snowball effect. Conversely, a sharp rejection at this level could provoke panic, amplifying volatility. This threshold is a real emotional crossroads decisive for Bitcoin (BTC).
A critical week opens for bitcoin which is at a decisive moment, oscillating between explosive potential and correction risks. If the current momentum holds, a new record could soon fall. But faced with uncertainties, the question remains open: will the climb to $110,000 be sustainable or temporary?
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The world is evolving and adaptation is the best weapon to survive in this undulating universe. Originally a crypto community manager, I am interested in anything that is directly or indirectly related to blockchain and its derivatives. To share my experience and promote a field that I am passionate about, nothing is better than writing informative and relaxed articles.
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.
