Bitcoin Price Analysis Powered by AI

Bitcoin Poised for New Highs: Technicals Signal Bullish Continuation Above $109,000

Long-term trend: Since late February 2025, BTC has established a strong upward trajectory, moving from lows around $78,000 to a recent high above $111,000. The price above $109,500 marks a sustained upward leg after consolidation in April and early May. The series of higher highs and higher lows, particularly the breakout in mid-May, signifies a firmly bullish trend.
Medium-term trend: In the weeks from May 12 to May 26, BTC's price structure shows progression from $102,000 through $107,000, then a significant rally to $111,000 and a subsequent healthy consolidation around $109,000–$110,000. Short retracements have been met with consistent buying pressure, indicating robust demand.
Short-term trend: On the hourly/daily scale (May 25-26), BTC exhibits a local range between $109,000 and $110,350 with frequent wicks and shallow dips being promptly bought up, suggesting little appetite among sellers and persistent accumulation.

Rising volumes: The rallies to and above $110,000 are accompanied by substantial volumes, especially around May 21-23 (crossing above $78B in daily volume at the peak). High volumes on upward moves indicate strong bullish conviction.
Recent action: During slight pullbacks post-May 23, volume softens, but recoveries (notably into $109,000s) see a surge, reflecting buyers stepping in on every dip.

Major resistance broken: The $107,000 to $111,000 zone has seen active price action. The recent breakout and sustained closes above $109,000 flip this zone into robust support.
Immediate resistance: The local high at $111,970 (May 22) stands as immediate upside target; secondary resistance at $115,000 (psychological/round number projection).
Immediate support: $109,000 (now tested multiple times on intraday wicks), followed by $108,800 and $107,500.

200-day MA: Escorts price in the region ~$102,000–$103,000, far below current price, confirming a powerful uptrend.
50-day & 20-day MAs: Both point steeply upwards and track just under the current price ($107,000–$109,000), offering dynamic support.
Short-term (1h/4h SMA/EMA): Price hovers above these averages ($109,300–$109,400), with rebounds on every test.

RSI (14):
- Rising into 70s on daily/hourly charts, indicating strong bullish momentum but not extreme overbought (above 80).
- On pullbacks, RSI resets without breaking the bullish range, signaling underlying accumulation rather than distribution.
MACD:
- Bullish crossover remains intact on 4h and daily, with MACD line widening above signal—momentum staying positive.
- Short-term MACD histogram briefly flattens after minor pullbacks, but quickly turns higher after each dip.
Stochastic Oscillator:
- Cycling up and down in the overbought territory on shorter timeframes but without sharp reversals, typical of trending markets.

Ascending channel: The past two weeks' price action displays an upward-sloping channel, with higher lows on every local pullback.
Bull flag (mid-May): The sharp rally and sideways consolidation from May 22–25 resembles a bull flag, now breaking to the upside.
Intra-day pennants/triangles: Emerging on 1h chart within $109,000–$110,350 range, with strong tendency to resolve upward.

Order book skew: Intraday price routinely spikes down to $109,000/$108,800 with visible liquidity absorption and rapid recovery, indicating limit bids clustered there and aggressive spot buying.
No evidence of heavy sell walls: The recent tops do not show rejection patterns or cascading high-volume sells.

ATR (Average True Range): High daily ATR (~$1,800–$2,200), suggesting ample room for intraday swings but within a controlled, trending regime.
Volatility pulses coincide with bullish moves: Sudden volume upticks on upside breakouts; drops do not see expansion in volatility, suggesting sell-offs are more liquidity-taking than trend reversals.

Sentiment: Price action indicates FOMO (fear-of-missing-out) on dips and resilient demand, a hallmark of strongly bullish phases.
No external risk shocks visible in price; BTC de-correlating from traditional risk assets as it leads with technical conviction.

Current segment: Appears to be in wave 3 of a 5-wave impulsive move, with minor consolidations in-between. No visible exhaustion or extended corrective structure.

Swing low ($102,000) to swing high ($111,970):
- 1.618 extension: $115,000+ (longer-term target, possibly for the next few days).
- 1.272 extension: $113,000 (likely achievable in short-term burst).

Downside risk: Most meaningful support lies at $109,000, then $108,300; downside sweeps have been shallow and met with forceful absorption.
Stop-loss placement suggestion: Below $108,500 for disciplined risk management.

All technicals align to a bullish continuation:
- No breakdowns or distribution on high volume.
- Multiple technical indicators reinforcing ongoing accumulation and breakout dynamic.
- Price action repeatedly demonstrates that dips are bought and resistance levels are converted to support.
- Recent, rapid recoveries on intraday drops down to $109,000 signify strong buyer interest exactly at logical support.
Upside potential: $111,900 (recent top) tested imminently, with probable extension towards $113,000 within 24 hours if momentum persists and market sentiment remains bullish.
Downside threat: Meaningful only below $108,800–$108,500, which seems unlikely barring a major external shock.

Edge: All technical indicators, price patterns, and orderbook structure favor a continuation of the uptrend, with minimal overhead resistance until prior high and likely extension. Current price ($109,536) offers a reasonable risk/reward, especially with tight support just below.

Open order at small retracement/support: Place buy order at $109,200 (just above the most recent cluster of support, historically seeing strong buying reaction).
Target close: $111,950 (prior high, offering a strong target for intraday swing, plus room for slight overextension).

Summary Table:

Action	Open Price	Target/Close Price	Confidence
Buy (Long)	$109,200	$111,950	High