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Bitcoin’s price action tightens as bulls actively purchase minor corrections, maintaining upward momentum near key resistance levels.
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Investor sentiment remains optimistic with Bitcoin finding firm support around $107,245, signaling confidence in sustained buying pressure during dips.
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According to COINOTAG, the Mayer Multiple at 1.1x remains within a neutral valuation zone, suggesting Bitcoin is poised for a potential breakout without being overextended.
Bitcoin consolidates near $107K-$111K, with strong support and neutral Mayer Multiple indicating a possible breakout toward new highs.
Bitcoin Price Consolidation Signals Potential Breakout
Bitcoin (BTC) is currently navigating a critical phase, trading between the 20-day exponential moving average (EMA) at approximately $107,314 and a significant resistance level near $110,530. This tight trading range reflects a balance between bullish momentum and seller caution. The upsloping 20-day EMA alongside a positive relative strength index (RSI) suggests that buyers retain control, positioning BTC for a potential upside breakout.
If Bitcoin surpasses the $110,530 resistance, it could challenge its all-time high at $111,980. This move would also complete the inverse head-and-shoulders pattern, a bullish technical formation that often precedes substantial price rallies. The successful breakout could pave the way for Bitcoin to target $150,000, a level derived from the pattern’s measured move.
Support Levels and Bearish Risks to Monitor
Despite the bullish outlook, traders should remain vigilant of key support levels. The 50-day simple moving average (SMA) near $106,642 acts as a critical floor. A decisive break below this level may trigger profit-taking among short-term holders, potentially driving the price down to $104,500 and further to $100,000. Additionally, the support at $107,245 has been consistently defended, with every minor dip met by buying interest. A failure to hold this support would invalidate the bullish setup and could lead to a decline toward the inverse head-and-shoulders pattern target of $103,960.
Technical Indicators Reinforce Neutral to Bullish Sentiment
CryptoQuant contributor Axel Adler Jr. highlights that the Mayer Multiple, currently at 1.1x, remains within the neutral zone (0.8–1.5x). This metric evaluates Bitcoin’s price relative to its 200-day moving average, providing insight into whether the asset is undervalued, overvalued, or fairly priced. The neutral reading suggests that Bitcoin is neither overheated nor undervalued, supporting the case for a sustainable upward move rather than a speculative bubble.
Furthermore, the developing descending channel pattern, if invalidated by a break above the downtrend line, would remove a key bearish technical barrier. This would increase the likelihood of Bitcoin advancing beyond $110,530, potentially reaching $113,500 in the near term.
Market Sentiment and Investor Behavior
Investor behavior remains a crucial factor as Bitcoin approaches these pivotal levels. The consistent accumulation during minor corrections indicates strong conviction among market participants. This buying activity not only stabilizes the price but also builds momentum for a possible breakout. However, sellers are expected to defend the neckline of the inverse head-and-shoulders pattern aggressively, making the upcoming price action critical for determining Bitcoin’s short-term trajectory.
Conclusion
Bitcoin’s current consolidation between key moving averages and resistance levels, combined with neutral valuation indicators like the Mayer Multiple, sets the stage for a potential breakout. Traders should watch for a decisive move above $110,530 to confirm bullish momentum and open the path toward new highs. Conversely, a break below $106,642 or $107,245 could signal a short-term correction. Maintaining awareness of these levels will be essential for navigating Bitcoin’s evolving market dynamics.
