Bitcoin (BTC) again blasted over the $100,000 level for the first time since Feb. 4. This extraordinary increase was fueled by a March influx of new liquidity. The increase set off massive short liquidations and drove speculation on the potential for higher price appreciation. From a technical perspective, indicators indicate that bullish momentum could continue, with analysts looking at potential targets well above current price levels.

The cryptocurrency blasted through the upper trendline at $88,000 on April 22. This move was the impetus for an important bull flag breakout on its weekly chart. Adding to that speculation, Bitcoin is enjoying a nice bump today on May 9, up about 4.3%.

Technical Indicators Point to Further Gains

BTC-USD is still trading in an uptrend, and has made a successful climb back above its 5-day, 10-day and 20-day moving averages. This positioning speaks to the positive momentum in the near term.

Others are pointing to the Relative Strength Index (RSI), a measure of asset momentum, which crossed 70 on Bitcoin, a threshold long considered a warning sign of “overbought” conditions. Some analysts are interpreting this as an early indication of a retreat. On the other hand, some say that powerful momentum may maintain the overbought RSI and allow Bitcoin to continue its upward trajectory. Bitcoin is working off of an ascending parallel channel in the short-term which could help to cushion pullbacks.

The immediate upside target for BTC is the previous all-time high daily close above $106,000.

Liquidation Cascade and Market Sentiment

This isolate increase caused around $800 million in short liquidations, making it the biggest liquidation event since 2021. Total crypto market liquidations exceeded $925 million, with nearly 90% targeting short positions.

Changpeng Zhao, the founder of Binance, has shared a bullish vision. He still thinks Bitcoin will reach $500,000 to $1 million in this market cycle. This audacious forecast, along with the technical call above, has only fueled the market’s exciting rise even more.

Bull Flag Target

Now, the bull flag formation seen Bitcoin’s weekly chart indicates a target of $182,200 for the move. This target is an impressive 75% increase from SHIB’s present value. The bull flag breakout happened when Bitcoin cleared the upper trendline at $88,000 on April 22.