Bitcoin has moved closer to the $106,000 mark, prompting fresh attention from analysts at institutional research firm 10x Research, who predict further upside.
According to market data, Bitcoin is trading at $104,272, showing a marginal 1.29% decline in the past 24 hours. This drop comes after Bitcoin soared to $105,706, closing in on the $106,000 milestone.
Despite the drop, it remains up 10.47% over the last seven days. While price fluctuations remain steady, research platform 10x Research reports that the recent rally may only be the beginning of a broader trend.
Breakout Above $84,500 Marked the Turn in Sentiment
10x Research stated that it shifted bullish on April 12–13 after Bitcoin broke above the critical $84,500 trendline. At that time, the asset had been trading under a descending resistance level, failing to surpass key price points near $92,000 and $94,213.
However, Bitcoin eventually formed a series of higher lows throughout April despite a broader consolidation trend. It secured a breakout above the trendline in late April, and this was followed by continued upward movement, confirming a reversal pattern.
At the point of breakout, several technical signals turned favorable. The Relative Strength Index (RSI) crossed the 50% threshold, suggesting strengthening momentum. Notably, analysts also observed a bullish divergence between price action and RSI readings, as Bitcoin printed a lower low that was not matched by the RSI.
This divergence aligned with the firm’s long-term strategy on call spreads, which has performed successfully as Bitcoin approached $106,000. Notably, 10x Research has now pushed its Bitcoin target upward, suggesting that the $106,000 is only Bitcoin’s steppingstone. However, the firm has hidden this new target behind a paywall.
Macro Conditions Support the Upside
Meanwhile, recent observations by 10x Research point to a changing market structure. The firm attributes the potential move to a combination of macroeconomic developments and increased demand through spot markets.
Easing inflation concerns and strategic buying have contributed to the rally. Additionally, growth in options trading has introduced new dynamics to Bitcoin’s price action. Platforms like Bybit now offer options, creating avenues for traders to leverage volatility and hedge positions.
Also note that in a May 9 update, 10x Research advised traders to retain existing $100K call spreads while rolling into June expiry spreads at $110K–$120K. The recommendation also includes hedging through short positions in the S&P 500. This trade setup reflects expectations of continued upside in the near term.
Technical Patterns Suggest Further Upside Toward $112K
Meanwhile, according to The Crypto Basic, the current price setup on the 4-hour chart indicates a breakout from an expanding wedge pattern. The recent upward surge has formed a 24-hour high of $105,706 while carving out a parallel channel.
Notably, a morning star pattern has emerged, often associated with breakout rallies. However, despite the price gain, the RSI has not shown a corresponding increase in this timeframe, suggesting a potential bearish divergence.
This lack of momentum may prompt a short-term retest of the previously broken trendline. For further gains, Bitcoin must close above the channel’s upper boundary. If achieved, the price could target the R1 pivot resistance near $108,284, with potential to extend toward R2 at $112,439.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
