Bitcoin Due for $116K Next? Trader Predicts ‘Early Week’ All-Time High as BTC Poised for Breakout

Bitcoin (BTC) is gearing up for a potential breakout that could propel its price to new all-time highs as early as next week, according to prominent crypto traders and market analysts. After a period of subdued volatility and tight price consolidation around the $103,000 level, Bitcoin is showing classic technical signals that often precede explosive moves.

As BTC/USD trades in a narrowing range, market participants are increasingly confident that a decisive move is imminent, with $116,000 emerging as a key target that could confirm Bitcoin’s return to price discovery mode.

Bitcoin’s Price Action: Brewing a Classic Breakout

Throughout the weekend leading up to the May 18 weekly close, Bitcoin’s price hovered closely around the $103,000 mark, acting like a magnet and showing minimal fluctuation. This kind of tight consolidation often signals that traders are positioning themselves ahead of a major move.

Data from Cointelegraph Markets Pro, TradingView, and CoinGlass highlighted $105,000 and $103,000 as critical liquidity zones, with traders anticipating a “liquidity grab” that could fuel a breakout.

Popular trader Alan summarized the sentiment succinctly on X (formerly Twitter):
“Next early week Bitcoin target: $116,000.”
He pointed out that BTC is forming a converging triangle pattern with decreasing volume, a textbook setup that often leads to a breakout.

Fellow trader Mikybull Crypto described the price structure as an “intraday diamond pattern breakout,” a formation known for signaling trend reversals or continuations. This pattern further supports the view that Bitcoin is primed for a significant directional move.

Institutional Demand and Coinbase Premium Signal Strength

Adding to the bullish narrative is the consistent Coinbase spot premium, which reflects higher Bitcoin prices on Coinbase compared to other exchanges like Binance. This premium is often interpreted as a sign of strong U.S. retail and institutional demand, as Coinbase is a popular platform for U.S.-based investors.

Trader Daan Crypto Trades noted:
“With the recent run-up, we’ve seen a consistent Coinbase spot premium. This is good and shows there’s solid demand.”

This institutional interest is critical, as it provides the liquidity and buying power needed to sustain a rally beyond key resistance levels.

Resistance and Potential Pullbacks: A Balanced View

Despite the growing optimism, some traders urge caution, highlighting the possibility of a temporary pullback before Bitcoin resumes its upward trajectory.

Trader CrypNuevo expressed a more conservative outlook:
“Slow week and Bitcoin hasn’t been able to break resistance so far, which still makes me think that this scenario might be possibly in play.”

Daan Crypto Trades also pointed out that Bitcoin has yet to decisively outperform stocks, which remain a major factor influencing crypto market dynamics. The recent relative weakness in Bitcoin’s price against equities coincided with a tentative “deal” between the U.S. and China, which temporarily eased geopolitical tensions.

This interplay suggests that Bitcoin’s price may remain sensitive to broader macroeconomic and geopolitical developments, potentially causing short-term volatility.

Longer-Term Risks: Retracement and Support Levels

While the near-term outlook is bullish, analysts warn of longer-term risks, including the possibility of a full retracement of Bitcoin’s recent relief rally. After recovering from multi-month lows near $75,000 in April, Bitcoin could revisit lower support levels if selling pressure intensifies.

Key support zones to watch include:

• $90,000: A critical psychological and technical support level.

• $80,000 to $85,000: Areas that historically provided strong buying interest.

A dip to these levels would not necessarily negate the bullish thesis but could represent healthy market consolidation before the next leg up.

What Could Trigger the Breakout?

Several factors could catalyze Bitcoin’s move toward $116,000 and beyond:

• Institutional Inflows: Continued capital inflows via spot Bitcoin ETFs and other regulated investment vehicles.

• Macro Uncertainty: Inflation concerns, interest rate policies, and geopolitical risks driving demand for Bitcoin as a store of value.

• Technical Momentum: Confirmation of a breakout above the $105,000 resistance and sustained volume increases.

• Market Sentiment: Renewed retail enthusiasm and positive news cycles boosting confidence.

Summary: Eyes on $116,000 and Beyond

Bitcoin’s current market structure, characterized by low volatility and converging price patterns, is setting the stage for a significant breakout. With $116,000 identified as a key target by traders, early next week could prove pivotal.

While a brief pullback remains a possibility, the combination of strong institutional demand, technical signals, and macroeconomic drivers supports a bullish outlook.

Investors and traders should monitor:

• Volume and price action around $105,000

• The behavior of the Coinbase premium

• Broader market correlations with equities and macro events