After a steep upswing, the Bitcoin price is experiencing a small pullback, forming yet another higher high. Although the bears are exerting pressure, the bulls continue to dominate the token, which has been reflected in the chart pattern. The formation of higher highs and lows hints towards a strong presence of bulls. As a result, the BTC price is primed to trigger a strong rebound and revive a strong upswing towards the target of forming a new ATH.
Ever since the rebound from the lows below $75,000, the BTC price has been rising within a pattern. The price spikes high, consolidates for a while and later triggers the next breakout. During every consolidation, liquidity accumulates on either side of the price, which indicates the growing uncertainty among the market participants. A similar accumulation has been observed during the current consolidation, which suggests another breakout could be fast approaching.
The BTC price is hanging between the two major cliffs, as a drop below $101,000 could activate the magnet at $100K or below, while a break above $105,000 may revive a strong rally towards new highs. Besides, a steady drop in the USDT dominance since April is a clear sign of funds pouring into BTC and altcoins. Moreover, the institutions are buying more than the miners can produce, which suggests a 3 times more supply squeeze is incoming.
Coming to technicals, the Bitcoin Z-score indicator has printed a new cycle high, signaling more price acceleration to come for the token. Historically, this indicator moving up fast usually indicates the start of a parabolic run on Bitcoin. Besides, the daily MACD hints towards a bearish crossover, while the rise of buying pressure is seen in the weekly timeframe. However, the RSI in both timeframes is plunging, hinting towards a drop in the strength of the rally, which could result in a pullback close to $100K.
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