Bitcoin is observing a potential decline to $105,000 after being unable to penetrate beyond the $110,000 mark. This suggests an ongoing struggle from the bears to prevent the digital asset from reaching its peak levels again. This pattern is evident from multiple unsuccessful attempts to cross $110,000 over the past few days, while bullish activities have maintained support above $108,000. Crypto analyst, TehThomas, had earlier predicted this rejection from the $110,000 level and shares interesting insights on possible future trends.
In his analysis, Thomas enlightens his audience about the current Bitcoin price situation and the potential for a pullback. This situation begins with a breakout after a drop towards $100,000, followed by a strong rebound. The digital currency managed to swiftly bridge multiple fair value gaps on 4-hour timeframes to secure its position above $110,000.
According to the crypto analyst, this movement has instigated a positive sentiment shift, accompanied by increasing trading volumes and impulsive candles, painting a largely bullish picture for Bitcoin. However, a price drop risk still looms.
Believing that an established pattern has been set for Bitcoin’s price, Thomas expects a similar trajectory, involving a quick rise followed by a brief pullback and a subsequent continuation. This pattern, termed by Thomas as “a classic breakout-fill-continue sequence”, is likely to repeat itself.
The recent Bitcoin price rally above $110,000 has seemingly left a fair value gap below $107,000, which Thomas predicts will need to be filled. If this turns out to be true, the price rally might halt until this condition is met. However, a pullback to this level will not necessarily be bearish but instead, could provide a launchpad for the price recovery.
The crypto analyst anticipates this pullback to drag the price down below $105,000, reaching as low as $104,000 territory before the next upward bounce. This implies a 5% pullback, which could be detrimental for altcoins based on this year’s trends.
Despite this, the major takeaway is Bitcoin’s sustained bullishness. Once the fair value gap is filled, a strong upward push is anticipated, potentially leading to new all-time highs. “I’m expecting a controlled retracement to fill the new 4H imbalance, after which price could continue pushing toward the major resistance area. The momentum is clean and structured—until that changes, continuation remains the more likely path,” stated the analyst.
