Bitcoin held onto strong gains as it closed the week of May 11, keeping the crypto market in suspense with prices lingering around the $104,500 mark. After a surge driven by weekend volatility, traders are eyeing whether the world’s top cryptocurrency is on the brink of a new breakout. Volatility Fuels Multimonth Highs Data showed Bitcoin reaching a high near $105,000 over the weekend. This jump occurred during low liquidity trading hours and coincided with renewed speculation about a positive shift in US-China trade relations. According to analyst Rekt Capital, the current price level is crucial. “Can Bitcoin do it? Can Bitcoin Weekly Close above the Range High of its recently reclaimed Re-Accumulation Range to kickstart the breakout process?” he asked on X. He suggested that Bitcoin may be entering the second phase of its “Price Discovery Uptrend,” a period historically characterized by steep gains. Bull Market May Still Have Room to Run Rekt Capital’s analysis pegged the current bull market as 85.5% complete but noted that some of the most volatile gains may still be ahead. Market monitoring site CoinGlass showed a concentration of sell orders just under $106,000, while buy orders stacked below $102,000 indicated strong interest around the current trading band. This dense liquidity zone suggests both bulls and bears are gearing up for the next significant price move. Skeptics Warn of a Fakeout Despite the optimism, some traders remain cautious. A popular trader known as HTL-NL suggested the current upswing could be a “fake out,” aimed at trapping latecomers betting on more gains. “Will $BTC close/open the week remaining within the range, will it do a ‘fake out (UTAD)’ or was this really a reaccumulation range as many want to believe,” he said. He admitted that while a genuine reaccumulation phase is possible, his primary expectation is that the rally may not sustain itself. Correction Risks Still Linger Il Capo of Crypto, a well-known bearish voice in the space, echoed similar warnings. “This is the time to scale out, not in,” he posted on May 10, cautioning that the rebound since early 2024 could eventually be wiped out if Bitcoin fails to break through resistance convincingly. With strong resistance being tested, the coming days could determine whether Bitcoin will soar to new highs or retreat once again.
