Key Points
- Bitcoin is trading above key short-term resistance levels with a bullish outlook.
- On-chain metrics highlight a recovering market with potential BTC surge beyond $100k.
Bitcoin [BTC] is currently trading above important short-term resistance levels, including $93.1k and $95.3k. The former represents the short-term realized price while the latter is the high of a range within which BTC has traded in the past five days.
Crypto analyst, Willy Woo, maintains a bullish outlook, predicting a BTC move to $108k. The liquidation heatmaps also suggest a $107k target. The on-chain metrics indicate a market recovery following a bearish reset.
Bitcoin Overcomes Market Drawdown
Bitcoin has navigated the market drawdown smoothly, with holders enjoying the benefits. According to a Glassnode Insights post, the MVRV Bands around the 1.74-level have acted as support. Bitcoin’s drawdown halted at this level during the August 2024 yen carry trade unwind.
Following a test on 8 April, the MVRV bounced off the 1.74-level, hitting 2.14 at press time. This indicates that Bitcoin has weathered another reset and is once again reflecting bullish conditions.
Positive On-Chain Indications
In a similar vein, the percent supply in profit oscillator recorded a bounce from its long-term mean at 74.8%. This metric shows whether coins are at a profit or loss compared to their cost basis. The bounce over the past two weeks mirrors the August-September 2024 trend.
At press time, the 7DMA of percent supply in profit was at 87%, further indicating bullish investor expectations. The 6-month liquidation heatmap reveals scant liquidity pockets to the south with major levels at $83k and $74.1k. To the north, the levels of $100k, $106.8k, and $110.2k appear to be the next significant magnetic zones.
The $96.6k liquidity cluster has already been swept up as the price broke out of a short-term range formation, accompanied by high trading volume. If the on-chain indicators are accurate and the market reset has concluded, a BTC surge beyond $100k could be expected in the coming days.
