Bitcoin [BTC] Reaches the Heights of $99.8k, Beginning to Reverse Just Below the $100k Mark

In the early hours of the 8th of May, Bitcoin [BTC] reached the heights of $99.8k, beginning to reverse just below the $100k mark.

The early hours of the 8th of May saw Bitcoin [BTC] soar to touch the apex at $99.8k before encountering resistance and beginning to reverse.

This rally came after the Federal Reserve opted to hold interest rates steady following a positive jobs report. The Fed also stated that the economy is “in a solid shape” despite the risks of stagflation.

Technical analysis indicated that BTC could be poised to make a move towards its all-time high at $108.7k. Key metrics highlighted that a bullish phase was in progress, but the market was not yet overheated, leaving scope for potential further gains.

Image: BTC/USDT on TradingView

Three months ago, in early February, Bitcoin slipped below the significant psychological level of $100k and subsequently encountered strong selling pressure that drove it as low as $74.5k in the first week of April. However, since then, the price trend has reversed sharply.

Over the past two weeks, a short-term range formation developed, but today, Bitcoin has surged explosively to break through the local highs at $97k.

The OBV has been exhibiting a consistent uptrend over the past month, making a challenge to the January highs. This is a strongly bullish sign, highlighting heavy buying pressure.

The MFI stands at 70, indicating strong bullish momentum, but it has not yet crossed into overbought territory. Additionally, the indicator has not yet formed a bearish divergence, although Thursday’s trading session close could introduce that possibility.

Image: Coinglass

The 3-month liquidation heatmap reveals a cluster of liquidation levels en route to BTC’s bid to reach a new all-time high. The $100k-$107k region is a magnetic zone that is likely to attract prices and pull them higher.

As such, traders can anticipate the ATH to be approached, possibly even surpassed.

The $91.6k-$92.3k zone also encountered a liquidity cluster that could be significant. However, the close proximity and size of the liquidation levels overhead make them a more likely near-term target.