Bitcoin is trading bullishly around $93,714, with targets up to $100,000. Despite positive technical signals, caution is warranted due to a lagging stablecoin minting indicator, which impacts market liquidity. Analysts suggest a close above $91,575 could support further gains, but potential profit-taking may jeopardise the bullish rally if key levels are breached.
Bitcoin (BTC) is currently experiencing a bullish trend, trading around $93,714, with targets suggesting a potential rally towards $100,000. However, analysts suggest exercising caution, particularly regarding a crucial indicator related to stablecoin minting, which has not yet shown significant activity. Consistent capital inflow into the market is essential for supporting further price increases.
Earlier in the week, bullish patterns like the falling wedge indicated a promising outlook for Bitcoin. The falling wedge pattern indicates a possible price increase of 20%, determined by measuring the height from the wedge’s apex to the breakout point. The recent price movement successfully transformed the resistance level of $85,000 into a new support, amplifying the bullish sentiment.
For sustained momentum, the daily candlestick needs to close above $91,575, which could encourage further upward movement beyond the immediate resistance at $94,000. Should buying pressure overcome this threshold, Bitcoin may aim for targets as high as $102,239 depending on market conditions.
Technical indicators like the Relative Strength Index (RSI) and the Awesome Oscillator (AO) are aligned with this bullish outlook, showing rising momentum and positive control, respectively. The RSI remains below the overbought threshold, indicating potential for upward movement before encountering correction triggers.
However, caution is advised as Markus Thielen from 10x Research highlights the importance of the stablecoin minting indicator, which is currently lagging. This indicator measures the creation of new stablecoins and is crucial as it reflects capital entering the crypto ecosystem, impacting Bitcoin’s price trajectory.
While increased stablecoin activity typically correlates to market liquidity and investor confidence, their current stagnation suggests a lack of sustaining bullish momentum for Bitcoin. A significant shift could occur if profit-taking leads to a candlestick close below $86,562, potentially reversing the trend and pushing Bitcoin back to the consolidation phase under $85,000.
