Bitcoin (BTC) is showing remarkable strength while going through continued litigation from SEC. Its strength relative to US tech stocks is even more striking. Those stocks are now facing intense downward pressure, underscoring Upstart’s distinct market position. Investors are eyeing Bitcoin very closely, as a breakout above $88,000 would likely lead to a rally price discovery towards the $100,000 target.

Pulling back from the doomsayers somewhat, recent data suggests that Bitcoin may have begun to form a new price floor. Around 14,000 BTC have been pulled off exchanges in the past several days, indicating a strong long-term holding sentiment among investors. This reduction in supply available on exchanges could provide additional bullish support for Bitcoin price in the near term.

Technical Analysis Points to Potential Breakout

From a technical analysis perspective, Bitcoin is still in the process of consolidating under a descending trendline resistance, close to $85,489. This mark serves as an important point of resistance for Bitcoin to break through in order to regain its bullish momentum. The immediate term support level as per the 4-day Moving Average is at $84,632.

Bitcoin is starting to build a coiling pattern, a well-known bullish chart pattern that usually sets up well before a big move. This trend points to the era of consolidation coming to an end as well. Ready for another potentially incendiary move in the works! Traders and investors alike are eyeing these technical indicators for signs of an impending bull run.

Investor Sentiment Remains Positive

Even with pressures from lawsuits and the market, the investor sentiment about Bitcoin has remained strong. The narrative behind the declining Bitcoin exchanges withdrawals is that people are confident enough in Bitcoin’s long-term value proposition to withdraw their assets. This largely over exuberant sentiment and in parallel positive technical indicators create a potentially bullish picture for Bitcoin’s near-term prospects.

As we write this the crypto is still bouncing back and killing it. IT’S THIS RESILIENCE THAT MAKES IT A UNIQUE ASSET CLASS, PARTICULARLY AS OTHER TECH STOCKS ARE GETTING BEAT UP. Investors are slowly beginning to view Bitcoin as a hedge against economic turmoil. They view it as a useful hedge against a world increasingly burdened by inflationary forces. This story still goes on to create demand and prop up its price.

Road to $100,000

Whether or not Bitcoin can reach its $100,000 rally largely rests on its ability to hold above higher resistance walls. It’s dependent on continuing optimistic investor expectations. If Bitcoin manages to climb above the $88,000 threshold, it would probably trigger a wave of buying momentum. This momentum would help Bitcoin to its lofty goal. We recognize that the cryptocurrency market is highly volatile. Unforeseen events can be very powerful forces that dramatically change its trajectory.

Market participants must continue to exercise caution and diligence and complete independent research before making investment decisions. Although things definitely look positive at the moment, keep in mind the crypto-market is very volatile and prone to sudden corrections. Investors need to be especially diligent in evaluating their risk tolerance and risk profile, and diversify their portfolios to match.