BTC Maintaining $100K Suggests Going After $110K and $120K Next

Bitcoin has been trading above $100K over the past couple of days and is currently climbing toward the $110K mark.

Technical Analysis

By Edris Derakhshi (TradingRage)

The Daily Chart

On the daily chart, the asset has been making higher highs and lows over the past few weeks, even after the uptrend slowed following the breakout above the $90K level. Meanwhile, the market failed to break above the $100K level on the first few attempts but finally succeeded a few days ago.

At the moment, the $110K and $120K levels are likely targets for Bitcoin, as the $100K level has now turned into a support zone.

The 4-Hour Chart

The 4-hour chart, however, shows a worrying signal. The market has yet to break above the ascending channel, which can be a reversal pattern if broken to the downside. The price is currently testing the higher boundary, and in case of a bearish rejection, the $100K support level will be the first likely destination.

Yet, an aggressive surge toward higher prices could be expected if the market can break the pattern to the upside.

On-Chain Analysis

By Edris Derakhshi (TradingRage)

Exchange Reserve

While Bitcoin’s price has been rallying over the past few weeks, making new all-time highs, investors have also been accumulating significantly. This in itself could be a primary reason behind the recent uptrend.

The exchange reserve metric, which measures the amount of BTC held in exchange wallets, is demonstrated in this chart. It is quite a helpful metric, and many analysts use it as a proxy for supply.

As the chart depicts, the exchange reserve metric has been dropping rapidly over the recent weeks, indicating a considerable decrease in supply. If this trend continues, Bitcoin will likely see higher prices in the coming months, as the supply and demand equation is clearly in favor of a price increase.