Key Points

• Liquidity is heavily concentrated around current spot prices, with $106,000 likely being the next significant level to watch.

• Some traders anticipate challenges when entering price discovery.

Bitcoin (BTC) secured substantial profits by the end of the week on May 11th, highlighting key levels to observe moving forward.

Analysis: BTC Prices Can “Kickstart the Breakout Process”

According to Cointelegraph Markets Pro and TradingView, BTC experienced notable volatility over the weekend, reaching nearly $105,000. This spike was partly due to a lack of liquidity during after-hours trading.

A trader’s tweet noted, “Bitcoin tagging headlines for almost $105,000.” Furthermore, there are optimistic market sentiments about trade discussions between the US and China, as recent shipping data indicates movement among container volumes.

Rekt Capital, a well-known trader and analyst, emphasized the potential for Bitcoin to approach its all-time highs and hinted at ongoing price discovery. He pointed out a critical weekly support level around $104,500.

“Can Bitcoin achieve this? It might bring the previously established re-accumulation ranges closer to the peak each week,” he posted, complementing his comments with an illustrative chart.

“Bitcoin is on the brink of early uptrends in price discovery.”

On another note, updates suggest Bitcoin’s current bull market stands at 85.5%, but volatility is expected to increase.

In a recent tweet, Rekt Capital shared progress metrics, indicating a rapid acceleration in market behavior.

Observing the latest Exchange Order Book data, there’s a significant buildup of bids right under $106,000. The current bids peaked at $102,000, marking a thickening of liquidity around spot prices.

Bitcoin Can Still Trace the “Whole Movement”

Despite the bullish outlook, some market players maintain a bearish perspective in the short term.

Popular trader HTL-NL expressed skepticism, suggesting the current rise to all-time highs could end up being a “false” move, potentially locking in longer positions.

“What happens if BTC closes or opens the remaining weeks within this range?” he questioned and referenced his analysis.

“Honestly, I still lean toward the initial two options based on the M/Q chart, but retracement isn’t off the table.”

Another cautionary voice comes from IL Capo, a trader known within the Bitcoin community. He warned that BTC/USD might revert to previous levels, possibly negating the rebound entirely.

“Now is not the moment to widen your positions; it’s time to be cautious,” he mentioned.

“We’ve been testing strong resistance. If this is a correction from a downtrend since January, it could ultimately lead to a significant reversal.”

IL Capo rose to notoriety for previously predicting a $12,000 BTC price target back at the beginning of the 2023 bull market.

This article does not offer investment advice or endorsements. All trading carries inherent risks, and it is essential for readers to conduct their own research before making decisions.