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A boost in Bitcoin’s spot volumes and a classic chart pattern hint that $110,000 could be the next stop for BTC price.
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Bitcoin (BTC) reached an all-time high of $75,358 after rallying 7.23% in a single four-hour candle. The bullish momentum accompanied the lead-up to Donald Trump’s US presidential election victory on Nov. 5.
With the US elections concluding with a “pro-crypto” president on deck, one crypto analyst re-iterated a Bitcoin price target above $100,000 in the coming weeks.
Bitcoin cup-and-handle pattern is “unfolding”
A few hours after the US election results, Titan of Crypto, an independent trader, highlighted a long-term cup-and-handle pattern for Bitcoin, which is currently undergoing a successful bullish breakout.
Bitcoin Cup and Handle pattern analysis by Titan of Crypto. Source: X.com
A cup-and-handle pattern has a high success rate of 95% during bullish market conditions, and it can yield an average profit of 54% from the breakout range.
In line with that, the trader mentioned that the “incoming” price target for BTC is $110,000, a 47% return on investment (ROI) of the current breakout price range of $75,000.
Meanwhile, Follis, an affiliated Bitcoin trader on the WOOX exchange, shed light on a peculiar market occurrence. In an X post, the trader explained that BTC demonstrated a three-month high in trading volume during the four-chart candle, which exhibited a new all-time high.
Bitcoin 4-hour trading volume spike. Source: X.com
The trader added,
“Last time we saw this much volume was at a multi-month low ($49k).
$BTC rallied +50% from this inflection point.”
As noted by Follis, the significance of this type of market behavior often leads to pivot points, where the price aggressively exits range-bound conditions.
Related: Bitcoin shorters ‘are getting rekt’ after new $75K high
Coinbase premium turns positive for Q4
One key metric to estimate the pulse of US retail investors is the Bitcoin Coinbase premium index. Data from CryptoQuant highlighted that the index turned green for the first time in Q4 after a strong selling period in October.
Bitcoin Coinbase premium index. Source: CryptoQuant
It is also important to note that the index registered a yearly low value on Oct. 25, when BTC dropped to $66,000. However, the index has recovered rapidly since then, indicating a potential surge in BTC spot demand from US retail investors.
Additionally, the spot delta turned positive on other exchanges during the late hours of Nov. 5, with Binance and Bitfinex spot markets exhibiting positive spot volumes. Thus, there was a collective buying spree for Bitcoin before the US election results were out, as investors braced for positive price action.
Bitcoin spot volumes on exchanges. Source: X.com
This article first appeared at Cointelegraph.com News
