What to Know:
- Bitcoin might experience a pullback to $117,000 before resumption of the upward trend.
- A classic chart pattern predicts a Bitcoin price on track for $145,000 in the coming months.
- The Bitcoin “bull flag” breakout suggests a potential rise to $145,000.
A recent surge in the price of Bitcoin (BTC) has put the crypto market in a state of anticipation. On Thursday, Bitcoin reached a six-week high of $119,500, marking a 10% increase from its local low of $108,650 a week earlier. As Bitcoin continues to consolidate below its $124,500 all-time high, the question on every crypto investor’s mind is, can new all-time highs be expected in the coming days?
Since its rally to an all-time high of $124,500 on August 14, Bitcoin’s price has retreated to areas below $110,000. This performance has created a bull flag pattern on the daily chart. A bull flag is a bullish continuation pattern that occurs after a significant rise, followed by a consolidation period at the higher price end of the range.
Recent data from Cointelegraph Markets Pro and TradingView indicates that Bitcoin has broken out of this bull flag, suggesting potential considerable gains in the near future. Notably, analyst Captain Faibik confirmed the “bullish flag upside breakout,” pointing out that the mid-term target is around $140,000.
This sentiment was echoed by the pseudonymous analyst Gladiator, who stated that Bitcoin is “closing strong with a clean breakout of this bull flag.” Gladiator further added that the breakout could be “explosive and move fast.”
According to Bitcoin’s MVRV extreme deviation pricing bands, once the BTC price surpasses $117,000, it could expand further. This would be before the unrealized profit held by investors reaches an extreme level or the uppermost MVRV band at $139,300.
However, analysts warn that a brief dip to test $117,000 as support could be the next move for Bitcoin’s price. This is due to the absorption of most of Bitcoin’s apparent sell-side liquidity during the move to $119,500. Michael van de Poppe, founder and trader at MN Capital, stated that Bitcoin “has taken almost all the liquidity above the recent highs, so I would expect some stalling here.”
Analyst Ted Pillows believes that Bitcoin must hold the $117,000 support level to continue the uptrend or risk a drop toward $113,500. He also notes that the only barrier between Bitcoin and a new all-time high is the $120,000 resistance level.
Cointelegraph reports that a decisive break above $120,000 could lead to a breakout toward new all-time highs above $150,000, owing to seasonality and institutional demand. While the crypto market continues to show bullish signs, investors are advised to conduct their own research and understand the risks involved in every trading move.
