Bitcoin is currently consolidating near its all-time high around the $112,000 level, following a significant 52% surge that occurred between early April and mid-May. Strong buying interest has consistently surfaced at critical support levels, preventing significant retracements.
Technical analysis suggests that a confirmed breakout above the $110,000 resistance could potentially propel Bitcoin towards a target of $165,000, representing a substantial 54% increase from recent levels. Key bullish indicators include the emergence of a pennant pattern, suggesting continuation of the prior uptrend, coupled with supportive macroeconomic factors like the persistent rise in US national debt.
Further supporting the potential for upward price movement is drastically reduced market liquidity. Bitcoin reserves held on cryptocurrency exchanges have plummeted to their lowest levels since mid-2019, signaling a strong propensity among holders for long-term accumulation. This historical trend of declining exchange supply has often preceded major price rallies.
Additional noteworthy market developments include the confirmation that retailer GameStop is expanding its corporate treasury reserve allocation to Bitcoin. Separately, reports indicate Barclays bank is considering implementing a ban on purchases of Bitcoin using its debit cards.