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Bitcoin has reclaimed the $104,500 level, signaling renewed bullish momentum after a brief dip below support earlier this week.
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Technical analysis indicates Bitcoin is currently consolidating within a bullish wedge pattern, suggesting a potential breakout to new highs in the near term.
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According to trader Merlijn The Trader, this price action resembles a classic bear trap, often preceding significant upward moves in Bitcoin’s price trajectory.
Bitcoin rebounds above $104,500, entering a bullish wedge pattern with breakout potential toward $110K-$116K, signaling renewed market confidence and accumulation.
Technical Indicators Point to Imminent Bitcoin Breakout
Bitcoin’s recent price movement, as analyzed on the 12-hour chart, reveals a breakout wedge pattern that has successfully held support after a brief dip below $103,000. This behavior, commonly identified as a bear trap, tends to eliminate weaker market participants, paving the way for stronger upward momentum. The consolidation phase within this wedge is tightening, which often precedes a decisive price move. Market analysts are closely watching this setup, forecasting a potential surge toward the $110,000 to $116,000 range if Bitcoin maintains its current trajectory.
Market Dynamics and Volume Trends Underpinning Price Recovery
Despite Bitcoin’s price increase of approximately 1.46% to $104,986, trading volume has declined by 25% to $45.56 billion, indicating a cautious but strategic positioning by institutional investors. This volume contraction suggests that larger players may be accumulating quietly ahead of a significant breakout. Bitcoin’s ability to hold key short-term support levels near $103,000 reinforces its resilience amid recent volatility. The market’s confidence is gradually rebuilding as investors shift focus from speculative altcoins back to established assets like Bitcoin and Ethereum, driven by tightening supply and positive on-chain accumulation metrics.
Broader Crypto Market Sentiment Shifts Favor Bitcoin’s Upside Potential
The current Bitcoin price recovery aligns with a broader rotation within the cryptocurrency market, where investors are increasingly favoring high-conviction assets over memecoins and highly speculative tokens. This shift is supported by on-chain data showing increased accumulation by long-term holders, which typically precedes upward price trends. Additionally, the approaching Bitcoin halving event continues to influence market sentiment positively, as historical patterns suggest reduced supply pressure post-halving often leads to price appreciation. Maintaining momentum above the $105,000 threshold will be critical for bulls aiming to sustain this rally.
Expert Insights and Market Outlook
Industry experts, including prominent traders like Merlijn The Trader, emphasize the significance of the current technical setup. Merlijn’s observation of a “fakeout” followed by a re-entry into the bullish wedge pattern highlights a common precursor to explosive price movements in Bitcoin. This perspective is echoed by other analysts forecasting targets as high as $120,000 in the medium term. However, cautious optimism prevails given the muted trading volumes and the need for confirmation of breakout strength. Investors are advised to monitor key support levels and volume trends closely to gauge the sustainability of this upward momentum.
Conclusion
Bitcoin’s reclaiming of the $104,500 level and its consolidation within a bullish wedge pattern suggest a promising setup for a potential breakout toward higher price targets. While trading volumes remain subdued, the underlying market dynamics and on-chain accumulation trends indicate growing confidence among institutional investors. Maintaining support above $105,000 will be essential for Bitcoin to capitalize on this momentum and possibly reach the $110,000 to $116,000 range in the near future. Market participants should stay vigilant for confirming signals while appreciating the resilience Bitcoin has demonstrated amid recent volatility.
