Key insights:
A potential Bitcoin price retracement to $117,000 may occur before the upward trend resumes.
A traditional chart pattern suggests BTC price could reach $145,000 in the coming months.
Bitcoin (BTC) achieved a six-week peak of $119,500 on Thursday, following a 10% increase from its local low of $108,650 just a week earlier. BTC has reclaimed a vital support level as prices continue to stabilize below its $124,500 all-time high.
Is it possible for Bitcoin to set new all-time highs in the upcoming days?
Bitcoin “bull flag” breakout suggests $145,000
After surging to its current all-time high of $124,500 on Aug. 14, the BTC price retraced to below $110,000, forming a bull flag on the daily chart.
A bull flag is a bullish continuation pattern that follows a significant rise, leading to a consolidation phase at the higher end of the price range.
Related: Bitcoin surges as US government shutdown looms: Will BTC thrive?
Recent data from Cointelegraph Markets Pro and TradingView indicates that BTC has broken out of the bull flag, setting the stage for substantial gains ahead.
Bitcoin’s “bullish flag breakout has been confirmed,” stated analyst Captain Faibik in his latest analysis on X, noting that the mid-term target is around $140,000.
Bitcoin is “closing strong with a clear breakout of this bull flag,” echoed pseudonymous analyst Gladiator in a Thursday X post, adding:
“This could become explosive and move quickly.”
A confirmed breakout from the pennant could pave the way for the next upward leg, targeting $145,400, which would signify a 22% increase from its current price level.
Bitcoin’s MVRV extreme deviation pricing bands suggest that once BTC price surpasses $117,000, it may continue to rise until the unrealized profit held by investors reaches an extreme level, indicated by the uppermost MVRV band at $139,300, according to the chart below.
Bitcoin may drop to retest support first
With the majority of Bitcoin’s apparent sell-side liquidity absorbed during the ascent to $119,500, some analysts caution that a brief dip to test $117,000 as support could be the subsequent move for BTC price.
Bitcoin “has absorbed almost all liquidity above the recent highs, so I would anticipate some stagnation here,” noted MN Capital founder and trader Michael van de Poppe in a Thursday X post.
An accompanying chart indicated that Bitcoin might retrace to test the support at $117,000 before continuing its recovery.
The BTC liquidity map reveals bid clusters concentrated between $116,000 and $117,800.
Analyst Ted Pillows stated that Bitcoin must maintain the $117,000 support level to continue the upward trend, or face a drop towards $113,500.
He added:
“The only barrier between BTC and a new ATH is the $120,000 resistance level.”
As Cointelegraph reported, a decisive breakthrough above $120,000 could trigger a rally towards new all-time highs exceeding $150,000, driven by seasonality and institutional demand.
This article does not contain investment advice or recommendations. Every investment and trading decision carries risk, and readers should conduct their own research when making a decision.
