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The recent surge in Bitcoin has rekindled the discussion about whether it can actually hit $150,000 in the near future. Bitcoin is currently trading close to $123,000, following a strong breakout from the $114,000-$117,000 range, indicating renewed strength and volume expansion. Nevertheless, a number of crucial technical elements that are visible on the current chart will determine whether the momentum can continue to reach six-figure territory.
20- and 50-day EMAs
The first and most obvious indication of bullishness is the fact that Bitcoin is well above its short-term moving averages. A definite short-term uptrend is confirmed by the upward slope of the 50-day (blue) and 20-day (green) EMAs. These levels have been regularly broken by Bitcoin, indicating high buying interest during declines. The bullish structure holds up as long as the price stays above the $117,000-$115,000 support zone, which is where the EMAs converge.
One long-term foundation
In the medium term, Bitcoin’s momentum is anchored by the 100-day EMA (orange), which is currently trading at about $113,000. The price began its most recent surge in late September when it decisively reclaimed this level. In the past, significant continuation rallies have frequently preceded Bitcoin’s establishment of this type of base structure and maintenance of it for several weeks. It is more likely that the market will reach higher highs in the upcoming months if it does not close below this moving average.
RSI and divergence in volume
The RSI, which is getting close to the 65-70 level that is frequently linked to overbought markets, is the third and more of a warning indicator. Although it is not a sell signal right away, it does indicate that temporary exhaustion may happen before another leg up. As traders take profits close to local highs, volume spikes that accompany recent movements also suggest potential distribution.
A push toward $150,000 within the upcoming rally cycle is conceivable if Bitcoin consolidates close to current levels without losing important EMAs. That milestone would be significantly delayed, and much of this bullish structure would be invalidated if the $115,000 support zone were to disappear.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team