Bitcoin (BTC) Price Prediction: BTC/USD to Run Toward the $110,000 Mark

Bitcoin is showing renewed strength as it moves above key resistance levels, potentially setting up for a run toward the $110,000 mark.

Bitcoin (BTC) price is showing renewed strength as it moves above key resistance levels, potentially setting up for a run toward the $110,000 mark.

After finding support around $102,000, Bitcoin began a fresh climb that has seen it bounce off several technical indicators and move above the $105,500 level. The price is now trading comfortably above the 100-hour Simple Moving Average.

This recovery has also allowed Bitcoin to break above the 50% Fibonacci retracement level of the previous downward move from $107,042 to $102,100. The upward momentum continued as BTC cleared the $104,200 resistance zone.

Market technicians note that the price has now settled above the 76.4% Fibonacci retracement level of the same downward move. This is typically viewed as a strong signal that the previous downtrend has been reversed.

The hourly chart reveals a short-term bullish trend line forming with support at $105,800. This pattern adds to the growing evidence of positive price action in the near term.

Positive Technical Indicators

The technical picture for Bitcoin is improving across multiple indicators. The hourly MACD is now gaining pace in the bullish zone, suggesting strengthening momentum.

At the same time, the Relative Strength Index (RSI) for BTC/USD has climbed above the 50 level. This indicates that buying pressure is overtaking selling pressure in the short term.

Looking ahead, Bitcoin faces immediate resistance near the $107,000 level. The first key resistance sits at around $107,200, followed by $107,500. Should Bitcoin close above $107,500, it could accelerate toward $108,800.

Breaking these barriers might send the price toward the $110,000 level, potentially establishing a new all-time high for the cryptocurrency.

On the downside, if the upward move stalls, Bitcoin has established support at several levels. Immediate support can be found near $105,800, with major support at $105,000 and $104,200.

The main support level sits at $102,500. A break below this zone could expose Bitcoin to further downside risk, with the next support level at $103,500.

Mayer Multiple Shows Room For Growth

An interesting perspective on Bitcoin’s current valuation comes from the Mayer Multiple, a metric that tracks how far Bitcoin’s price is from its 200-day moving average.

The Mayer Multiple Z-Score, which measures the deviation of this ratio from its historical mean, is currently below zero. This indicates that Bitcoin’s price relative to its long-term average is actually lower than its usual range.

According to data analysis, approximately 53% of all previous trading days have seen a higher Mayer Multiple than current levels. This suggests that despite trading above $100,000, Bitcoin is not in overheated territory by historical standards.

This relative coolness in valuation may be surprising to some, given the recent price action and volatility. However, the Z-Score provides insight into how this Multiple compares to its own historical trends.

Bitcoin recently dipped below its 200-day moving average during market turbulence but has since recovered and broken back above this important technical level. The 200-day MA is widely considered a dividing line between long-term bullish and bearish market conditions.

While the Mayer Multiple has exceeded its mean several times during the current market cycle, it has not reached the extreme levels witnessed during the 2021 bull market. The largest deviation in the current cycle occurred during the rally in the first quarter of 2024.

This relatively restrained Z-Score reading suggests Bitcoin may have room for further upside before reaching the kind of extreme valuations that have historically preceded major corrections.

At press time, Bitcoin is changing hands around $102,700, down about 1.5% over the past seven days. However, the technical structure remains constructive for further gains if key resistance levels are overcome.