Author: Yashu Gola, CoinTelegraph; Translated by: Wu Zhu, Jinsuo Caijing
Summary
- BTC settlement levels, on-chain data, and chart settings are all focused on the target of 100,000 dollars.
- Profitability has significantly improved, indicating a rebound in market confidence.
BTC is flashing multiple technical and on-chain signals indicating a potential rebound to $100,000 by May. The following five charts suggest a breakout is imminent.
BTC double bottom suggests a target price of $100,600
The daily chart of BTC has formed a typical double bottom, confirming a breakout above the neckline resistance level of $87,643. It is expected to reach $100,575 or above.
BTC/USD daily price chart. Data source: TradingView
The Relative Strength Index (RSI) and other momentum indicators support this argument, remaining in the bullish zone with greater expansion potential. Meanwhile, the 50-day and 200-day Exponential Moving Averages (EMA) have turned into support levels, providing additional tailwind.
After the breakout, the trading volume remained stable, indicating that buyers are still in control. This lays a solid foundation for Bitcoin to move towards $100,600.
Bull Market Aiming for Six-Figure BTC
From the hourly chart, BTC is consolidating within a bullish triangle flag after a significant rise. This pattern indicates a temporary hesitation before the next round of upward movement. The target price is around $100,900.
BTC/USD hourly price chart. Source: TradingView
The triangle flag pattern forms after a sharp rise, indicating that the BTC price may first pull back and then resume its upward trend. Although the trading volume is low, the structure is still intact and supported by a strong EMA alignment.
Breaking above the trendline of the triangle flag may trigger new upward momentum, attracting short-term traders and algorithms targeting integer breakouts.
The breakout target for Bitcoin’s descending wedge is $102,000
The three-day chart shows that a descending wedge breakout has been completed, with prices breaking through the key resistance area near $94,000. The expected target is $102,270.
BTC/USD three-day price chart. Source: TradingView
A descending wedge is typically a bullish reversal pattern, and the clear breakout of BTC above the upward trend line has increased technical confidence. The price is also above the 50-3D EMA, which is a key trend signal.
During the breakout period, trading volume surged, indicating strong buyer confidence.
The resistance level of 94,000-95,000 USD is currently limiting Bitcoin’s upward attempts. Breaking this level means BTC can rapidly make its full move towards 100,000 USD.
Large short liquidations around $100,000
The liquidation data shows that there have been a large number of short liquidations around the level of $100,000. These positions often act like magnets, pulling prices towards them as market makers seek liquidity.
BTC/USDT three-month liquidation heatmap. Source: CoinGlass
If BTC continues to rise, it will put pressure on the bears, who may be forced to exit, triggering a large number of buy orders.
The liquidity chart is usually pre-priced. Due to the activity density approaching six figures, the path with the least resistance in the short term seems to be upward.
Bitcoin profitability has improved after the breakout
According to data from Glassnode, as of April 23, 87.3% of the circulating supply of Bitcoin is in a profit state, up from 82.7% when the last trading price of BTC was nearly $94,000 in early March.
This growth indicates that a significant portion of the Bitcoin supply changed hands at lower levels during the adjustment period in March, reflecting a new wave of accumulation.
BTC supply profit percentage. Source: Glassnode
Historically, when the percentage of profit supply has remained above 90% for a long time, the market often enters a euphoric stage. As profitability is now close to this threshold, bullish sentiment continues to strengthen.
Combining the bullish chart structure and concentrated short-term liquidity, BTC still has the potential to reach $100,000 in May.
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