Bitcoin is currently attempting to regain short-term bullish momentum, as reflected in its price movements over the last 24 hours. Following a brief dip below $104,500, the cryptocurrency rebounded to trade above $106,000. Technical analysis suggests a formation that may signal the beginning of a longer rally.
According to analyst Titan of Crypto, Bitcoin is nearing a potential confirmation of a golden cross, a bullish indicator, in the coming days, as illustrated on the daily Ichimoku chart. This development is particularly noteworthy as it may herald a significant upward shift in the market.
On the social media platform X, Titan emphasized that Bitcoin's recent daily close above the Tenkan line represents a strong technical signal. The Tenkan, or conversion line, is a key indicator in Ichimoku analysis used to assess short-term trend strength. The current setup on Bitcoin’s daily chart indicates favorable conditions for a golden cross, where the short-term average surpasses the long-term average, a reliable pattern for signaling trend reversals.
At this moment, Bitcoin’s price is consolidating around $105,000. Should the golden cross materialize, Bitcoin may attempt to climb towards the crucial resistance level near $111,600. However, ongoing geopolitical tensions, particularly in the Middle East, could potentially disrupt this bullish outlook.
Despite the positive technical indicators, other market signals are raising concerns about Bitcoin's trajectory. Analyst Ali Martinez has identified $104,124 as a significant support level for Bitcoin, as it corresponds to a high concentration of UTXO realized prices. If Bitcoin falls below this threshold, it could head towards $97,405, given the thin safety net between $104,000 and $97,000, which may lead to a rapid correction due to insufficient buying interest.
Additionally, the behavior of large Bitcoin holders, or whales, is complicating the market landscape. On-chain data reveals that addresses holding over 1,000 BTC have begun to reduce their holdings in recent days, a trend that started shortly after Bitcoin reached its all-time high of $111,800 on May 22. The decline in whale wallets persisted following Bitcoin's rejection near the $110,000 mark early last week.
Currently, the number of whale addresses has decreased from a peak of 2,114 to 2,094. At present, Bitcoin is trading at $105,505.
