After Bitcoin's price recently soared to a historical high of $112,000, it reignited market hopes of reaching a $150,000 target by year-end. However, this week's rapid pullback that nearly broke below the $100,000 mark is testing investors' optimistic sentiment.
At the time of writing, Bitcoin is trading at $105,420, having rebounded to a pressure level since Friday. Whether it can maintain this level or if there will be a second dip will be the key focus next week.
Market Bulls and Bears Analysis
According to a recent Bitget News report, Bitcoin's 50-day moving average crossing above the 200-day moving average forms a "golden cross", a typical bullish signal. Meanwhile, the gradually clarifying regulatory environment for stablecoins is also helping to boost institutional confidence.
On-chain data shows that Bitcoin researcher AXEL Adler Jr. pointed out that if the NUPL/MVRV ratio can break through and maintain above 1.0, it might signal the start of a new bull market.
According to Cointelegraph's analysis, Bitcoin's daily chart shows an inverted head and shoulders pattern, with the neckline around $100,800 serving as support. If broken, it could drop to $91,000, which is close to the 200-day exponential moving average (EMA).
Additionally, it's worth noting that Bitcoin's weekly chart shows a divergence between price and RSI (with RSI decreasing as price increases), similar to the cycle top in 2021 when price hit new highs but RSI declined, followed by a significant market correction.
The market generally believes that if Bitcoin effectively breaks through the $112,000 to $115,000 resistance zone, it will be key to triggering a $150,000 price by year-end. However, investors still need to be aware of potential risks such as market volatility, regulatory uncertainty, and unexpected macroeconomic events.
