What’s Next for BTC After Breaking Above $104K?

Bitcoin kicked off the second week of Could with a strong continuation transfer, breaking by way of key resistance ranges and climbing to contemporary native highs. Whereas the rally has been speedy, and the present technical indicators recommend there’s nonetheless fuel left within the tank, warning remains to be warranted.

The Every day Chart

On the day by day timeframe, BTC has pushed decisively above the $100K resistance and is now hovering across the $104K mark. This breakout marks a transparent escape from the month-long compression between the rising trendline and the 100 and 200-day shifting averages.

The worth has reclaimed each the shifting averages across the $90K value degree, and the RSI is holding above 70, indicating robust momentum. Nonetheless, it additionally factors to barely overbought circumstances. If the consumers preserve strain and keep away from sharp rejections, a run towards a brand new all-time excessive is probably going.

The 4-Hour Chart

Zooming into the 4H chart, the breakout turns into even clearer. BTC exited an ascending channel sample to the upside, rallying by way of the earlier key provide zone round $98K with nearly no resistance. Since then, the asset has been grinding increased in an orderly style, supported by the RSI cooling off.

The newest value motion reveals indicators of slowing momentum, however there’s no reversal affirmation but. A wholesome pullback into the $100K–$98K vary could be a logical space to search for continuation setups if the consumers stay in management. Nonetheless, if that degree fails, assist at $94K might catch the following wave of bids.

Onchain Evaluation

Miner Reserve

On-chain knowledge reveals a persistent downtrend within the Bitcoin Miner Reserve, which has now dropped to round 1.8M BTC, the bottom in recent times. This implies that miners aren’t accumulating, however slightly persevering with a long-term distribution sample. As an alternative of accelerating their holdings throughout this rally, they look like steadily offloading BTC, probably to capitalize on increased costs or handle operational prices post-halving.

Whereas this doesn’t essentially sign aggressive promoting, it does point out that miners aren’t contributing to long-term provide tightening in the intervening time. Their lack of accumulation, in distinction to robust spot shopping for, reinforces the concept that present demand is being pushed by different market individuals, comparable to establishments and retail buyers.