Key Takeaways
- Bitcoin eyes breakout past diagonal resistance after a solid rebound at $100.4K.
- Golden Cross points to potential 70%-170% gains in coming months.
- CPI data on Wednesday likely to set the market tone amid rising volatility.
Bitcoin is once again testing the limits of a diagonal resistance that has acted as a cap in recent weeks. After bouncing from a key support zone between $99K and $100K, with the latest pivot at $100,400, the flagship crypto appears poised for a breakout.
According to Doctor Profit, a prominent market commentator known for his long-term calls, the price structure now aligns with a strong upward continuation pattern.
Doctor Profit initially predicted Bitcoin’s run to $100K three years ago when BTC hovered around $16K. That target, once dismissed as overly optimistic, has now been achieved. Attention now turns to the next phase, with Doctor Profit forecasting a new bullish leg that could see prices rise between 70% and 170% in the coming months.
One key technical development fueling this optimism is the formation of a Golden Cross, a bullish signal where the 50-day moving average crosses above the 200-day. This crossover, confirmed weeks ago, often precedes major market rallies and is now reinforcing the case for an aggressive climb toward and beyond the all-time high.
Lower-Than-Expected CPI Could Spark Bitcoin Rally
The week ahead looks quite volatile, given the U.S. Consumer Price Index (CPI) report due on Wednesday. Doctor Profit considers Wall Street’s expectation of a 2.5% CPI to be ridiculous. He rather sees it falling within the range of 2.1% and 2.3%, which would imply additional inflation relief.
Such a result would sharply alter the tenor of monetary policy. Fed Chair Jerome Powell might have the latitude to shift gears toward rate cuts, which would nearly certainly spark a robust rally in both equity markets and digital assets. The macro environment thus becomes a potential catalyst for Bitcoin’s breakout scenario.
Bitcoin Shorts Dominate as Price Eyes $110K Liquidity Zone
Interestingly, the Bitcoin funding rate is negative at the moment. In such a situation, shorts outnumber longs, a scenario that usually precedes a significant price rise. This is further encouragement to bullish traders.
Furthermore, liquidity clusters exist between $108K and $110K, forming the near-term targets. These zones look set to be tested and perhaps even penned in the next few sessions, especially if momentum picks up further. Doctor Profit is not convinced this rally has just scratched the surface with room to go well beyond the near-term range.
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