Bitcoin (BTC) Eyes $110K as Bullish Momentum Builds

After weeks of uncertainty and market swings, Bitcoin's bullish outlook is becoming clearer as the price approaches all-time highs (ATH) and nears the

Bitcoin (BTC) price is continuing its bullish momentum, approaching all-time highs (ATH) and setting the stage for a potential price discovery phase. As BTC grinds higher, several key levels are emerging, promising a massive breakout if bulls can maintain the support.

Recent data from Glassnode highlights an interesting trend, showing that retail participation remains lower compared to previous market peaks. One way to measure retail investor activity is by tracking the Spent Volume of wallets holding less than 0.1 BTC. At its peak in November 2024, retail investors were spending $20.6 million per hour. Now, that figure has dropped to $10.7 million per hour, marking a 48% decline.

This decline in retail activity suggests that the current rally still has room to grow, as Bitcoin has historically seen its strongest rallies when retail investors flood in. With institutional demand rising and key support levels holding strong, Bitcoin is positioned for a potential breakout beyond ATH.

As BTC approaches price discovery, the next few trading sessions will be critical in determining whether the breakout will happen soon or if BTC will consolidate before its next major move upward.

Bitcoin Price Analysis: January 2023

Bitcoin price opened the month of January bullishly, attempting to reclaim the $18,000 level after a brief stint below it. Bulls managed to push BTC price to highs of $18,300 before facing strong resistance, leading to a rejection back into the lower time frame.

After the initial bullish momentum stalled, BTC price dropped throughout the second week of January, reaching lows of $16,400 before finding support. This massive drop formed a lower wick on the daily time frame, indicating strong buying pressure at these levels. From the lows, bulls began to rally once again.

Bitcoin price recovered quickly, rallying back above the $17,000 level and reaching highs of $17,300 by the third week of the month. This rally was met with another wave of selling pressure, keeping BTC within a bullish range. From the highs, another leg down began.

Finally, as the month came to an end, Bitcoin price dropped once again, reaching lows of $16,100 before finding support once more. This formed another lower wick on the daily time frame, indicating strong buying pressure at these levels. From the lows, bulls began to rally again, pushing BTC price back above $16,300 as the month ended.

Bitcoin price is setting up for a potential breakout from a bullish continuation pattern, forming a series of higher lows and lower highs on the daily time frame. If bulls can maintain the support levels and push BTC price to break out, the next logical move would be a continuation of the bullish trend, targeting the $20K-$25K range.

However, if bears manage to gain control and break the lower support levels, BTC price could drop to test the $14K-$15K demand zone, where we can expect another round of bullish momentum to begin.