A critical breakout for Bitcoin has been highlighted by the popular market analyst Michaël van de Poppe (@CryptoMichNL). He noted that Bitcoin had cleared the $106,500 resistance level he had been eyeing.
The crypto analyst confirmed bullish news with this move, predicting a sharp increase as long as higher volumes persist.
Bitcoin Breaking Through $106,500
According to Van de Poppe, currently Bitcoin is above $106,500, and two factors usually push the price upward: buys and short sellers being forced to close their positions.
The moment a major level is broken, many traders try to benefit from the first opportunity of a rally. On the other hand, those who have placed trades on the decline of Bitcoin feel an urge to buy back, which increases the token’s value.
The analyst said the rising price of Bitcoin near $108,900 could make the breakout develop more quickly. Before, achieving such heights has often resulted in rapid changes in prices because day traders immediately join to profit.
Because the coin has been trading close to these ranges for weeks, the move up above $106,500 shows that the buyers are back in charge.
Off to a Good Beginning
In his report, van de Poppe saw the recent breakout as a start to a new trading week. He believes that maintaining these levels will propel the market even further.
With the interest from more institutions and the recent approval of some cryptocurrency exchange-traded funds, the market remains confident.
On his chart, the analyst clearly marks out where he expects further buying and a potential round of selling. If Bitcoin maintains its crucial support during the week, traders could aim higher and expect its price to climb toward $110,000.
Points Traders Should Observe
Many participants in the market are watching for activities and order books at the $106,500 price point to check whether the breakout stays intact.
If the crypto continues to gain, it could attract big investors, but a fast pullback might leave buyers who joined in too late with little profit to show. According to Van de Poppe, these price points decide Bitcoin’s trend over the following period.
As the current week goes on, people in the market will expect to see if the asset holds its latest gains or drops slightly to settle down before moving upward again.
