Bitcoin (BTC) Price Hits Its Highest Levels Since January, Eyeing Key Levels to Watch

Bitcoin (BTC) is at its highest levels since January, and traders are eyeing key levels to watch for what’s next.

Bitcoin (BTC) price action is at its highest since January, and traders are scanning key levels to watch for what’s next.

After hitting $104,000, BTC/USD is retracing to try and establish support, but the fate of $100,000 is among the concerns.

Current price action also represents an important battleground, as measured from the lows of this year.

” Headline driven” BTC price gains draw scrutiny

Just $6,000 from new all-time highs, BTC price action has stunned the market with a 10% move in the span of days.

The pace of the BTC price gains has come as a surprise for many, but longer-term perspectives show where the most difficult battleground lies.

“Since this current impulse was primarily headline driven again this puts markets into a crucial & critical trading day,” trader Skew said about the impetus for the move in an X post on May 8.

Skew refers to a common theme uniting BTC price volatility in recent weeks and months. Bitcoin and risk assets have become highly sensitive to headlines and even social media posts.

The latest event involves a trade deal between the US and UK, but how long optimism endures remains an open bet.

“I’m sure markets are hoping this has a kick on effect to get trade deals on the table for other major trade parties like EU & China,” Skew continues.

Another X post said what is needed now are “passive flows,” strong volume to support newly revisited levels and turn them into strong support.

Skew added:

Fibonacci levels spotlight crucial bull market battle

Current local highs for BTC/USD have breached the $104,000 mark, and zooming out, Fibonacci retracement analysis reveals that price is now in a key zone.

“$BTC is at the last technical level to clear before new ATHs,” commentator Patric H. announced in an X post.

An accompanying chart offered important Fibonacci levels as measured from Bitcoin’s local lows around $75,000.

Another trading account, Kingpin Crypto, revealed a conspicuous breakout attempt for the 1.618 Fibonacci level on the monthly chart.

“Rejection and pullback from 1.618 lasted a bit longer till May. However, can’t deny how beautifully the fib level played out,” it said.

Liquidations waiting in the wings

A cautionary note involved order book liquidity at current levels.

Related: How high can Bitcoin price go?

The latest data from monitoring resource CoinGlass showed price eating away at bids immediately below $103,000, with the bulk of interest clustered below $100,000.

To the upside, however, little friction remained, with the bulk of liquidations having already occurred on the return to six figures.

“There’s much less short liquidity clustered above,” trader TheKingfisher confirmed on X.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.