The Bitcoin price is currently in a correction phase after reaching an all-time high of around $111,800 in recent months, and is currently quoted at around $104,000 to $105,000. This correction is due to profit-taking and a broader sell-off in the cryptocurrency market.
Current Market Situation and Technical Analysis
- After reaching the high of around $112,000, Bitcoin has corrected to the 50-day EMA (about $101,500), from where the price has bounced bullishly, increasing short-term by about 6%.
- The price has surpassed the Fibonacci resistance at approximately $104,830; the next important resistance is around $108,000.
- A breach of this level could mark the end of the current correction phase and pave the way for new highs.
- Technical indicators show mixed signals: EMAs indicate a Golden Crossover (bullish signal), while the MACD lines have crossed bearishly; however, the MACD histogram is rising, and the RSI remains neutral.
Fundamental Factors and Institutional Demand
Despite short-term fluctuations, there are strong fundamental reasons for optimistic outlooks:
- The Coinbase premium remains positive, indicating that institutional investors are willing to pay higher prices.
- Net outflows of Bitcoin from Coinbase signal purchases by institutional investors or ETF-related transactions.
- Large investors (“whales”) have accumulated over 122,000 Bitcoins in the last six weeks.
- Historical data shows a high probability that a positive May will be followed by a positive June – May already recorded an increase of nearly twelve percent.
Forecast for Long-Term Potential
Some analysts see great potential for Bitcoin despite the current correction with long-term price targets:
- Short-term, larger pullbacks below $100,000 could be discussed, but a continuation of the bull cycle is expected in the medium term.
- A possible target of up to $600,000 is being mentioned, based on fundamentals such as increasing adoption and institutional interest.
In summary, there is a lot of positive momentum in the market driven by institutional engagement and technical supports near important levels, which supports the upward potential to over $100,000.