After several days of volatility due to a general market decline, Bitcoin is finally seeing upside momentum. Thus far, the flagship asset has reclaimed the pivotal $105,000 price level and is targeting higher highs. While BTC regains traction, certain developments might cause a notable pullback in the upcoming weeks.
A Potential Drop In Bitcoin’s Price Amid Whale Optimism
Alphractal, an advanced on-chain data analytics and investment platform has outlined a development that could trigger a pullback for Bitcoin in the short term. The platform claims BTC’s price momentum faces a potential retracement to the $74,000 level, even as whale investors keep adding to their long positions.
This prediction by Alphractal shows that short-term price declines are a possibility in light of heightened accumulation by high net-worth investors. As the crypto asset gradually moves upward, this forecast raises worries about whether BTC can sustain its renewed uptrend.
Presently, Bitcoin’s price has increased and is back above the $105,000 level. Examining the whale activity at this point using the Whale Vs. Retail Ratio, Alphractal revealed that large investors are more interested in long positions than retail investors.
A rise in whales’ interest in long positions indicates heightened optimism and confidence in BTC’s long-term price performance. Furthermore, it suggests that big investors are capitalizing on recent dips while retail investors appear to be more cautious and less exposed to leveraged longs.
One important aspect Alphractal highlights to monitor in the metric is the large gap with low trading volume in Bitcoin between $74,000 and $86,000. Meanwhile, the platform anticipates a pullback to this range in the upcoming weeks should the current price recovery fail to hold. At this point, the asset will seek consolidation and liquidity formation.
Recent Uptrend To Continue To A New All-Time High?
As the price recovers, the major question is whether BTC can maintain its recent uptrend or if a strong correction is underway. However, after evaluating current price action, Mags, a technical analyst and trader highlighted that BTC could be on its way to a new all-time high shortly, suggesting the continuation of its uptrend.
His forecast comes after a consolidation phase, allowing BTC to muster enough strength for a breakout. Following the recent consolidation, the expert claims that prices appear poised for another leg up.Â
Mags believes Bitcoin’s recent upward momentum will continue due to a breakout from a massive Cup and Handle chart pattern. According to the expert, the bullish breakout would trigger a leg up to the $125,000 level, which is the measured price target for the chart pattern.
Titan of Crypto also forecasted a move for BTC toward the $125,000 level in the short term. The market analyst predicted after citing an impending Inverse Head and Shoulders formation in the monthly time frame. With several key indicators pointing to an upward move, it is more likely that a new all-time high will occur soon.
