Bitcoin is showing strong bullish signs of the start of a new rally. Technical patterns and on-chain data have led experts to predict the asset will hit $100,000 by May. Several key indicators suggest a bullish outlook for the world’s top cryptocurrency. It’s still consolidating its recent gains and preparing for the next attack.

Technical Indicators Point North

Bitcoin has created a perfect textbook double bottom on its daily chart, a bullish reversal pattern. The double bottom serves to confirm a breakout above the neckline resistance at $87,643, opening the door for additional upside. The measured move from this pattern projects a target of $100,575 at least.

Further fueling the bullish momentum, Bitcoin is currently trading within a bull pennant formation on the 1-hour chart. This pattern often comes after an equally fast rally and indicates that the bigger trend up is set to continue.

On the bullish side, Bitcoin recently finished a three-day chart falling wedge breakout, escaping a crucial resistance area around $94,000. The estimated move from this falling wedge breakout points to $102,270 further confirming the $100K target. Bitcoin is at the moment well above the 50-3D EMA, a major trend indicator that traders frequently track.

On-Chain Data Supports Bullish Thesis

On-chain data further supports the bullish outlook. Specifically, as of April 23, the overall circulating supply of Bitcoin that is in profit is at 87.3%. Consider that Bitcoin was around $94,000 just in the beginning of March. This means at the time, 82.7% of that supply was in profit. This increase is a positive indicator of investor confidence and a more solidified foundation for future price appreciation.

Liquidation Levels Suggest Short Squeeze Potential

Liquidation level analysis shows a very concentrated group of short positions right around the $100,000 mark. This opens up the possibility of a short squeeze. A sharp price spike can trigger short sellers to cover, creating a vicious circle that boosts the rally. The target for this potential short squeeze and subsequent bullish exuberance is around $100,900.