Key takeaways:
BTC needs to surpass the next major resistance level to access targets between $127,000 and $137,000.
On-chain metrics indicate potential for growth, with key risk levels at $122,000 and $138,000.
Bitcoin (BTC) finished September with a 5.35% gain, rebounding from a late-month dip. Historically, such positive Septembers have set up a bullish “Pumptober,” as per on-chain analytics from Lookonchain.
With Bitcoin already climbing today, will history favor substantial BTC gains in October once again?
BTC price double bottom targets $127,000
Bitcoin’s daily chart reveals a classic double bottom setup, a bullish reversal pattern that forms when the price bounces twice off a similar support level before rising.
In BTC’s scenario, the two troughs are positioned near $113,000, with a neckline resistance around $117,300.
The technical target for this setup suggests a price of approximately $127,500 if bulls successfully push above the neckline resistance. This projection arises from measuring the depth of the pattern and adding it to the breakout level.
The relative strength index (RSI) for Bitcoin indicates an upward movement from neutral levels, hinting that bulls might be regaining momentum.
Breaking through the $118,000–$119,000 area, where close to $8 billion in short positions exist, would further support the breakout and increase the likelihood of reaching the double-bottom target.
Symmetrical triangle sets Bitcoin up for $137,000
Bitcoin is also positioned within a large symmetrical triangle pattern observed on the daily chart.
This configuration, characterized by converging trendlines of lower highs and higher lows, typically indicates an impending breakout as the price approaches the apex.
The projected height of the triangle suggests a target near $137,000, representing an increase of over 18% from current values. This target aligns closely with the 1.618 Fibonacci extension level around $134,700.
Onchain data shows BTC has not topped
Bitcoin remains beneath its “heated” risk level, indicating that the rally may still have room to grow before short-term traders become overextended.
The cryptocurrency’s Short-Term Holder Cost Basis Model reports an average recent buy price of approximately $102,900, according to Glassnode data.
This model identifies the heated zone at $122,000 as the first crucial threshold, and the overheated zone at $138,000 as a level that has historically marked cycle peaks.
Related: Bitcoin revives gold correlation as BTC price nears $117K
In essence, if this “Pumptober” rally has momentum, then $122,000 is the next near-term target, with $138,000 acting as a potential ceiling before another correction.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
