Bitcoin price is on the verge of decisively breaking above the $100,000 resistance level as investors prepare for a possible rally higher.
Is a new all-time high on the horizon?
Technical analysis
By Edris Derakhshi (TradingRage)
The daily chart
On the daily chart, the asset has been consistently posting highs and lows since recovering from the $52,000 support level. It has also broken through several resistance levels and is now sitting well above the $100,000 resistance.
Meanwhile, the RSI is showing clear bullish momentum and the market is likely to finally decisively conquer $100,000 and advance towards the $120,000 psychological resistance zone.
The 4 hour chart
The 4-hour chart shows a clearer picture of the recent price action as the market has been rising within a large ascending channel.
However, as the lower boundary of the pattern remains intact, the market is now paving its way towards the higher trendline and potentially towards the $105,000 level in the near term. A break above the ascending channel is likely to lead to an aggressive rally to the upside.
Chain analysis
By Edris Derakhshi (TradingRage)
Coinbase Premium Index
US investors, including US institutions, are mostly responsible for market movements. As a result, analyzing their behavior can be beneficial in making an accurate prediction about short-term market movements.
This chart features the Coinbase Premium Bitcoin Index, which is a metric that measures the relative buying and selling pressure on Coinbase compared to Binance. Coinbase is primarily used by American traders, while Binance is used worldwide. Therefore, this metric can indicate whether US investors are buying or selling at a faster or slower rate than in other parts of the world.
As the chart demonstrates, the Coinbase Premium Index has demonstrated very positive values in recent months, indicating post-election US buying pressure, which is likely responsible for the recent market rally. As long as this metric shows positive readings, BTC could expect further upside.
