The Bitcoin price soared to a new all-time high of $89,940 on Binance on Tuesday, fueled by market excitement over Donald Trump’s victory in the US presidential election. The surge comes as Trump has promised to establish a national Bitcoin reserve and has even considered using Bitcoin to pay down the US national debt.
Bitcoin Price Targets $102,000
Amid this bullish atmosphere, pioneering Bitcoin on-chain analyst Willy Woo (@woonomic) provided insights into Bitcoin’s potential next moves via X. He identified key price levels, stating that after reaching the $88,000 to $91,000 range, the next target is $102,000.
“When BTC breaks into all-time-highs, there’s no prior history of resistances for the market to trade around. This means price goes into unfettered price discovery, expect wild swings,” Woo explained via X.
He highlighted two methods for identifying new resistance levels in such scenarios: Fibonacci bands, which use natural mathematical sequences, and real liquidation levels of market positions. He noted that the $88,000 to $91,000 range was the first target—now achieved—and suggested that consolidation should occur there.
“$88-91k was the first target. We hit it. Consolidation should happen here. This is both from local fib levels and liquidation levels where most of the shorts have been taken out, it’s the end of compulsory buying from short sellers getting culled,” Woo remarked.
He added that “$102k is the next macro fib, using last cycle high and this cycle low,” referring to the next significant Fibonacci retracement level. “Let’s see where new liquidations cluster around, but for now, that’s our next target based on fibs.”
Woo also touched on the Chicago Mercantile Exchange (CME) gap—a price gap in Bitcoin futures that often appears over weekends or trading halts. A user named Bill O’Rights (@ajdavault) asked about its potential impact: “What about the CME gap?”
Woo responded that if the CME gap plays out, it would be part of the consolidation phase. “88-91k was the target price to hit before engaging a cool-off phase,” he noted. Notably, a new CME gap has formed over the past weekend, located between $78,000 and approximately $80,700. Since mid-March 2024, Bitcoin has filled every CME gap that has formed, although historically, not every gap gets filled.
Another user pointed out potential resistance based on technical analysis, referencing an assessment by Sven Henrich, founder and Chief Market Strategist at NorthmanTrader. Henrich observed that Bitcoin is “approaching key trend line resistance on a pronounced negative weekly RSI divergence,” noting that a similar divergence occurred when Bitcoin peaked in November 2021.
Woo acknowledged Henrich’s expertise but emphasized the importance of fundamental factors over traditional technical analysis. “One really important thing to note is the fundamental demand and supply structure, from actual investor activity, global liquidity expansion, and market positioning is 100% different, almost completely opposite,” he stated.
When questioned about the use of Fibonacci levels—which are a form of technical analysis—Woo agreed but pointed out that their effectiveness is enhanced when combined with fundamental market conditions. “Not dissing it,” he said regarding technical analysis. “Just gets better taking into account the fundamental environment.”
At press time, Bitcoin traded at $87,492.
