Key takeaways:
A potential pullback of Bitcoin price to $117,000 may occur before the upward trend continues.
A traditional chart pattern suggests BTC could reach $145,000 in the coming months.
Bitcoin (BTC) hit a six-week peak of $119,500 on Thursday, following a 10% increase from its local low of $108,650 a week earlier. BTC has regained a significant support level as prices continue to stabilize below its all-time high of $124,500.
Is it possible for Bitcoin to set new all-time highs in the upcoming days?
Bitcoin “bull flag” breakout indicates $145,000
Following its all-time high of $124,500 on August 14, BTC price retreated to levels below $110,000, forming a bull flag on the daily chart.
A bull flag is a bullish continuation pattern that emerges after a significant rise, followed by a consolidation phase at the higher price end of the range.
Related: Bitcoin rallies as US government shutdown begins: Will BTC gains persist?
Recent data from Cointelegraph Markets Pro and TradingView indicates that BTC has successfully broken out of the bull flag, positioning itself for considerable gains ahead.
Bitcoin’s “bullish flag upside breakout is confirmed,” noted analyst Captain Faibik in his latest analysis on X, highlighting a mid-term target of approximately $140,000.
Bitcoin is “closing strong with a clean breakout of this bull flag,” echoed pseudonymous analyst Gladiator in a Thursday X post, adding:
“This could get explosive and move fast.”
A confirmed breakout from the pennant could pave the way for the next surge toward $145,400, representing a 22% increase from its current price level.
Bitcoin’s MVRV extreme deviation pricing bands indicate that once BTC surpasses $117,000, it could extend further before the unrealized profit held by investors reaches an extreme, or the uppermost MVRV band at $139,300, as demonstrated in the chart below.
Bitcoin may test support before moving higher
With a majority of Bitcoin’s visible sell-side liquidity absorbed during the ascension to $119,500, some analysts suggest a brief drop to test $117,000 as support could be the next movement for BTC price.
Bitcoin “has taken almost all the liquidity above the recent highs, so I would expect some stalling here,” stated MN Capital founder and trader Michael van de Poppe in a Thursday X post.
An accompanying chart indicated that Bitcoin could decline to retest the support at $117,000 before continuing its recovery.
The BTC liquidity map reveals bid clusters accumulated between $116,000 and $117,800.
Analyst Ted Pillows suggested that Bitcoin needs to maintain the $117,000 support level to sustain the upward trend, or risk a drop towards $113,500.
He added:
“The only thing standing between BTC and a new ATH is the $120,000 resistance level.”
As Cointelegraph indicated, a decisive break above $120,000 could trigger a breakout toward new all-time highs over $150,000, due to seasonality and institutional demand.
This article does not provide investment advice or recommendations. Every investment and trading action involves risk, and readers should perform their own research when making a decision.
