After Bitcoin (BTC) hit an all-time high of over $73,000 in early 2024, most investors have set their sights on $100,000 as the next benchmark valuation for the premier cryptocurrency. Now, a trading expert has come forward to offer a blueprint for pushing Bitcoin toward that milestone.
In particular, expert Peter DiCarlo noted that Bitcoin looks strong to reach $100,000 but needs to break the $68,000 resistance level to confirm the path to a new record high, he said in a post on X on September 28.
Bitcoin price analysis chart. Source: TradingView/Peter DiCarlo
DiCarlo noted that Bitcoin is currently in a bullish flag formation, a classic indicator of bullish momentum, but warned that the pattern has “fooled a lot of traders” in recent months.
He pointed out that the key to the breakout lies in the “bx” indicator, which represents a bullish accumulation area. The bx area below $68,000 indicates that institutional investors have been steadily accumulating bitcoin. DiCarlo believes that bitcoin is ripe for a breakout as long as this bullish accumulation continues.
“BTCUSD looks strong and is headed to $100k in the coming months. However, we need to clear $68k before confirmation! This bullish flag has fooled a lot of traders over the past couple of months,” he said.
Bitcoin Basics Home
Additionally, the analysis highlighted an accumulation area around $52,000, where institutional buying was particularly strong. This accumulation provides a strong foundation for Bitcoin’s potential upward move.
In the current situation, Bitcoin may build on the current bullish momentum to reclaim the $68,000 level as the asset prepares for one of the strongest finishes in September. To this end, investors are looking to the “Uptober” phenomenon, where the number one cryptocurrency tends to surge in October.
However, this momentum is not guaranteed, as Bitcoin still has several hurdles to overcome before it has a strong chance of rallying in October. For example, as Finbold noted, Bitcoin has significant liquidity on the downside, and the asset needs to liquidate individual long positions before rallying next month.
In fact, Bitcoin set its target at $70,000 during the period of stablecoin liquidity influx and the recovery in the crypto market. In this context, a report by 10x Research noted that before the Fed cut interest rates, nearly $10 billion in stablecoins were issued, which drove market liquidity higher. High volume is essential since stablecoins are often used to turn around positions in the crypto market.
A cautious look at Bitcoin
Amid the prevailing bullish sentiment, cryptocurrency trading expert Ali Martinez noted in a post on X on September 27 that investors should expect a potential price correction. The warning is based on Bitcoin’s TD Sequential indicator, which indicated a sell on the four-hour chart.
Historically, such signals have been associated with price corrections, and traders may expect some downward pressure on Bitcoin in the near term. With Bitcoin trading at $65,000, indicators suggest that the asset is likely to fall further.
Bitcoin price analysis chart. Source: TradingView/Ali_charts
Bitcoin was trading at $65,665 at the time of writing, having fallen by about 0.1% in the last 24 hours. On the weekly chart, Bitcoin is up by about 4%.
Bitcoin price chart for 7 days. Source: Finbold
In short, while Bitcoin is showing strong bullish momentum, it faces significant resistance at $68,000, which is crucial to reaching $100,000. Despite the positive signs, caution is warranted as market volatility and potential corrections could disrupt its upward trajectory.
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