The price of Bitcoin rose to a new all-time high of $89,940 on Binance on Tuesday, driven by market excitement over Donald Trump’s victory in the US presidential election. This increase comes as Trump promised to create a national Bitcoin reserve and even considered using Bitcoin to pay off the US national debt.
Bitcoin price targets $102,000
Amidst this bullish atmosphere, leading on-chain Bitcoin analyst Willy Wu (@woonomic) available Insight into Bitcoin’s potential next moves via X. He identified key price levels, noting that after reaching the $88,000 to $91,000 range, the next target is $102,000.
“When Bitcoin hits all-time highs, there is no prior history of market resistance to trade around. “This means the price goes into unrestrained price discovery, anticipating extreme volatility,” Wu explained via X.
He highlighted two ways to identify new resistance levels in such scenarios: Fibonacci ranges, which use natural mathematical sequences, and true liquidation levels for market positions. He noted that the $88,000 to $91,000 range was the first target — which has now been achieved — and suggested consolidation could take place there.
“The first target was $88-91k. We hit it off. Consolidation has to happen here. This is from the local Fibonacci levels and liquidation levels where most of the short trades have been taken out, it is the end of the forced buying from short sellers, which has been executed,” Wu commented.
“The $102,000 level is the next big Fibonacci level, using the high of the last cycle and the low of this cycle,” he added, referring to the next important Fibonacci retracement level. “Let’s see where the new eliminations stack up, but for now, this is our next target based on lies.”
Wu also touched on the Chicago Mercantile Exchange (CME) gap, which is a price gap in Bitcoin futures that often appears during weekends or trading halts. A user named Bill Oraitis (@ajdavault) asked about its potential impact: “What about the continuing medical education gap?”
Woo replied that if a CME gap appears, it will be part of the consolidation phase. He pointed out that “88-91 thousand was the target price that must be reached before entering the calming phase.” It is worth noting that a new CME gap was formed over the past weekend, ranging between $78,000 and around $80,700. Since mid-March 2024, Bitcoin has filled every hole on the Chicago Mercantile Exchange that has formed, although not every hole has been filled historically.
Another user pointed out potential resistance based on technical analysis, citing an assessment by Sven Henrich, founder and chief market strategist at NorthmanTrader. Henrich noted that Bitcoin is “approaching major trend line resistance with a clear negative weekly RSI divergence,” noting that a similar divergence occurred when Bitcoin peaked in November 2021.
Wu acknowledged Henrich’s expertise but emphasized the importance of fundamental factors compared to traditional technical analysis. “One of the really important things to note is that the underlying supply and demand structure, from the actual investor activity, the expansion of global liquidity, the market situation is 100% different, almost exactly the opposite,” he said.
When asked about using Fibonacci levels – a form of technical analysis – Wu agreed but noted that their effectiveness is enhanced when combined with fundamental market conditions. Regarding technical analysis, he said: “I don’t rule it out.” “It just gets better considering the underlying environment.”
At press time, Bitcoin was trading at $87,492.
Featured image created with DALL.E, a chart from TradingView.com
Comments are closed, but trackbacks and pingbacks are open.