Main Insights:
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BTC liquidation thresholds, onchain statistics, and chart formations align with the $100K objective.
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Profitability has escalated, indicating a resurgence of market trust.
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BTC breakout formations highlight $100K as a potential target for a short-squeeze and euphoria.
Bitcoin (BTC) is exhibiting various technical and onchain indicators suggesting that a surge to $100,000 could occur by May. Here are five charts supporting the notion of an imminent breakout.
BTC double-bottom indicates $100,600 goal
The daily chart of BTC has created a textbook double bottom, confirming a breakout above the neckline resistance at $87,643. This formation projects a measured movement towards $100,575 or beyond.
Momentum indicators such as the relative strength index (RSI) bolster this argument, remaining in bullish territory with ample room to grow. In the meantime, the 50- and 200-day exponential moving averages (EMAs) have transitioned into support, providing additional momentum.
Post-breakout volume has stayed consistent, indicating that buyers are still dominant. This setup lays a robust groundwork for Bitcoin to advance towards $100,600.
Bull pennant pattern eyes BTC price in six figures
On the hourly chart, BTC consolidates within a bull pennant following a significant rally. This setup indicates a temporary stalemate before the next upward movement. The goal is situated close to $100,900.
The pennant emerged after a steep ascent, implying that BTC’s price is likely winding up before continuing its upward trend. Though the volume is low, the structure persists and is supported by strong EMA alignment.
A breakout surpassing the upper trendline of the pennant could generate renewed upward momentum, attracting short-term traders and algorithms aimed at round-number breakouts.
Bitcoin’s falling wedge breakout aims for $102,000
The three-day chart displays a finalized falling wedge breakout, with the price surpassing a critical resistance zone around $94,000. The anticipated movement targets $102,270.
Falling wedges generally indicate bullish reversal patterns, and BTC’s clear breakout above the upper trendline adds to technical conviction. The price is also maintaining itself above the 50-3D EMA, which is a significant trend indicator.
Volume increased during the breakout, indicating strong buyer confidence.
The $94,000-95,000 resistance is currently limiting Bitcoin’s upward movement. A break through this resistance could result in BTC rapidly completing its measured move towards $100,000.
Binance heatmap reveals liquidity magnet at $100K
Liquidation statistics show a substantial cluster of short liquidations surrounding the $100,000 level. These positions frequently function like a magnet, drawing prices towards them as market makers seek liquidity.
If BTC continues to rise, it will exert pressure on short sellers who may be compelled to exit, resulting in a cascade of buy orders.
Related: $635M liquidated in 24H as trader predicts $100K Bitcoin short squeeze
Liquidity maps often anticipate price movements. With such concentrated activity near the six-figure mark, the path of least resistance appears to be upward in the short term.
Bitcoin profitability rises following breakout
As of April 23, 87.3% of Bitcoin’s circulating supply was deemed profitable, up from 82.7% when BTC last traded near $94,000 in early March, according to Glassnode statistics.
The rise signifies that a substantial portion of the Bitcoin supply exchanged hands at lower price points during the March correction, indicating a new wave of accumulation.
Historically, when the Percent Supply in Profit stays above 90% for an extended duration, markets typically transition into a euphoric state. With profitability nearing this limit, bullish sentiment continues to intensify.
Coupled with bullish chart configurations and concentrated short liquidity overhead, BTC remains poised for a potential shift towards $100,000 by May.
This article is not intended as investment advice or recommendations. Every investment and trading action carries risk, and readers should perform their own research when making decisions.