Bitcoin has shown resilience by staying above $100,000 for several days, leading to optimism among investors who are now targeting $110,000 and $120,000. The cryptocurrency's upward momentum has transformed the $100,000 level from resistance to support, indicating a bullish sentiment in the market.
The recent price rally of Bitcoin has been accompanied by a decrease in supply, as indicated by a decline in the exchange reserve. This suggests that the supply-demand dynamics are favoring a price increase. If this trend continues, Bitcoin is likely to experience upward price pressure in the coming months.
Investor sentiment surrounding Bitcoin remains positive, supported by the recent price action and supply dynamics. However, caution is advised due to the potential for a bearish reversal. Traders should remain vigilant, as a failure to break above the ascending channel could lead to a decline with the $100,000 support level becoming important.
In summary, Bitcoin's performance above $100,000 reflects a combination of technical analysis, supply dynamics, and market sentiment. The cryptocurrency's path towards $110,000 and $120,000 is of significant interest to the financial community, and the coming weeks will be crucial in determining its future trajectory.