According to Cointelegraph, Bitcoin is on the brink of achieving its highest monthly candle close in history, with just 11 days remaining in the month. Following a record weekly close of $106,407 on May 18, Bitcoin could secure a new monthly high by closing above $102,400. This potential milestone underscores the ongoing bull market, which continues to gain momentum. The cryptocurrency's current trajectory suggests it is nearing a 'price discovery' phase, as highlighted by crypto trader Jelle. Price discovery involves buyers and sellers interacting at an undefined range to establish the market price of an asset. A breakthrough above Bitcoin's all-time high of $110,000 would initiate this phase, propelling BTC into an uncharted trading range with successive higher highs until a new equilibrium between supply and demand is reached.
Cointelegraph also noted that Bitcoin is close to confirming a 'golden cross' on its daily chart, a pattern historically associated with 45% to 60% price rallies. This development aligns with the likelihood of Bitcoin reaching new highs this month. A monthly close near $110,000 would represent a 15% to 17% gain for Bitcoin in May, marking its strongest May performance since 2019 and significantly surpassing the historical average monthly return of 8% for the month. Bitcoin researcher Axel Adler Jr. has identified a key technical pattern in Bitcoin’s current bull cycle, pointing to three recent instances of 'compression'—periods of tightening price ranges—measured by rolling maximum/minimum over 180 days. This compression often signals an impending breakout, as evidenced by the 2017 rally when Bitcoin surged from $1,000 to $20,000.
From a liquidation perspective, over $3 billion in short leveraged positions are at risk if Bitcoin's price climbs to $110,000 from $105,000. Conversely, a drop to $94,612 would trigger a similar amount in long liquidations. This skew indicates a higher probability of the price pushing upward to chase liquidity on the sell-side rather than dropping lower. Technical analyst Gert van Lagen echoed this sentiment, stating, 'A liquidation magnet is glowing above $107K, ready to vaporize billions in shorts. First, BTC soared on fear. Next, it'll rise on liquidations.' This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Anais