Ever since the start of the year, the markets have experienced massive volatility. As a result, the Bitcoin price oscillates with a huge margin on either side. This increased the volatility of the crypto, attracting immense attention. Besides, the BTC dominance also rebounded finely from the crucial support, hinting there is still more room for the BTC bulls to thrive and hence Bitcoin is primed to form a new ATH in the upcoming days.
During the last trading day, the bears slashed the price below $98,000, marking the lows for the prevailing bearish. This was when the whales and the traders jumped in to accumulate BTC at a discounted price, casing a ‘V-shaped’ recovery, which is considered the sharpest backed by immense buying pressure. Interestingly, the price underwent a similar recovery in the recent past, which resulted in a 15% upswing, helping the crypto form a new ATH at $109.3K. Therefore, if a similar breakout occurs, the Bitcoin price could be poised for another 15% upswing.
The short-term price action of BTC appears to be extremely bullish, as the rally is about to re-attempt a previous pattern. Just before marching towards the ATH, BTC price traded within a range-bound consolidation, resulting in a 5% pullback, marking lows below $90,000. Further, the price underwent a v-shaped recovery and after reaching the neckline, it launched a massive bullish attack to a new ATH. A similar pattern is repeating, which revives the hopes for a new ATH as the technicals are also in favour of a bullish breakout.
The MACD displays a massive drop in the selling pressure while the levels have converged for a bullish crossover. Meanwhile, the Bollinger bands have also expanded similarly as before and once the price reaches the upper bands, a fresh bull run could begin. Therefore, the minimum level to achieve is around $107,041, as surpassing these levels may push the price into the discovery phase. If the Bitcoin (BTC) price mirrors the previous breakout, one can expect a new ATH close to $120K, somewhere in the first fortnight of February 2025.
