After consolidating around the $95,000 mark for the last week, bitcoin is breaking out today and is targeting the $100,000 level again.
Currently the price is at $96,400, the highest price since late February, and now less than 15% from the $109,400 all-time high.
For me this breakout was on the cards. After a strong rally – which we saw particularly on Tuesday 22nd April amid significantly large inflows into the spot bitcoin ETFs – price typically consolidates, building momentum for another move in the direction of the prevailing trend, in this case higher.
Focus now turns to the non-farm payrolls and unemployment rate data on Friday, as well as the Fed’s interest rate decision which could provide a further tailwind for the bitcoin price.
Beyond next week, I think we’ll continue to trend higher. Sentiment is above neutral (according to the fear and greed index) and global liquidity – essentially how much money is available in the global economy and a metric which the bitcoin price closely mirrors – is forecast to increase throughout the year.