Bitcoin Price Enters Consolidation Phase Before Expected Surge to $106,000-$110,000 Range
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Following a remarkable surge that propelled Bitcoin past the $100,000 threshold, the price has now stabilized into a familiar yet strategic consolidation phase. Currently, Bitcoin is trading at approximately $103,000, with technical analysis suggesting that this might be a quiet period before a substantial move towards the $106,000 to $110,000 range.
As noted by RLinda, a crypto analyst on TradingView, the recent consolidation is not indicative of weakness but instead a conscious preparation for the next upward movement.
Bitcoin Price Consolidation Between Key Levels Builds Momentum
Bitcoin’s ascent from the $97,860 breakout level to the $104,300 resistance zone represents a distinct distribution phase, and currently, the price is fluctuating between $104,300 and $102,300. It’s evident that the price rally has significantly slowed down in the last 48 hours.
However, crypto analyst RLinda pointed out that this range-bound activity is a favorable sign, indicating bullish momentum rather than weakness. A rebound from the lower end of this range, particularly from $103,300, $102,300, or as low as $101,700, could serve as a launching pad for an attempt to surpass the $104,300 resistance.
It’s important to note that the analyst highlighted that this third retest did not manage to elevate the price back to resistance, resulting in a temporary decline. Nevertheless, the subsequent breach of $103,336 indicates that the underlying strength remains intact. Should Bitcoin successfully retest $103,600 and rebound from the liquidity zone between $102,700 and $102,300, it may attempt another breakout above the $104,300 barrier.
If this scenario unfolds, the next leg could reach as high as $106,000 or even $107,000; further momentum could then propel the price beyond its current all-time high of $108,786, potentially reaching $110,000 before the end of May. Price expectations beyond this mark range from $120,000 to $180,000 by year’s end.
Chart Image Via TradingView: RLinda
On-Chain Signals Support a Bullish Perspective
This short-term consolidation is not taking place in a vacuum. Importantly, on-chain metrics and market sentiment bolster Bitcoin’s upward trajectory for the remainder of the month.
According to crypto analyst Ali Martinez, over 110,000 BTC have been removed from centralized exchanges within the last month. As shown in the CryptoQuant chart below, this has decreased the total Bitcoin reserves on exchanges from 2.57 million BTC to 2.45 million BTC.
BTC is currently trading at $104,406. Chart: TradingView
This action indicates that investors are transferring their holdings into cold storage or preparing for long-term retention, which lowers immediate selling pressure and supports upward price movement.
Chart Image From X: @ali_charts
Presently, the key support levels to observe are $103,300, $102,300, and $101,700, while the resistance levels for new all-time highs are $104,300 and $108,786.
At the time of writing, Bitcoin was priced at $103,670.
Featured image from Unsplash, chart from TradingView
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