The recent Bitcoin price surge seems to be losing steam after an extraordinary gaining streak, with prices currently testing crucial levels that could determine its next direction.
Summary
- Bitcoin is trading around $122,000 after briefly dipping to about $120,600, indicating a slight cooldown after reaching new all-time highs.
- The rise that began in early October, dubbed “Uptober,” saw BTC soar past $126,000 before settling in a narrow range with reduced volumes.
- A double bottom formation and minimal profit-taking suggest that bullish momentum may persist if Bitcoin maintains support above $120,000.
At the time of writing, Bitcoin is priced at approximately $122,000, reflecting a modest correction that leaves it up 0.46% for the day as momentum diminishes post-recent highs. Earlier today, the crypto king’s value dipped close to $120,600, remaining within a tight range slightly above yesterday’s figures.
This current price behavior mirrors a broader slow down in the crypto market as the recent rally exhibits signs of fatigue. Over the last week, Bitcoin (BTC) increased from roughly $119,000, surpassed critical resistance, crossed $126,000, and has now settled below $123,000.
This multi-day surge was driven by significant spot buying and record inflows into ETFs, pushing the asset to unprecedented highs amid strong interest from both retail and institutional investors. However, the momentum waned midweek, and prices are now consolidating between $121,000 and $125,000 with diminished trading volumes.
As the asset cools, attention turns to whether $120,000 can serve as a support level for the next upward movement.
Can Bitcoin price continue its rally?
Bitcoin’s technical perspective suggests potential strength following the emergence of a classic double bottom pattern on the daily chart.
The pattern consists of two notable lows at similar price levels and a sharp increase to new highs, widely recognized by traders as a bullish reversal signal. Here, Bitcoin rebounded from support near $108,000, surpassed the pattern’s “neckline,” and achieved a new all-time high.
Supporting this optimistic outlook, a recent CryptoQuant analysis highlights that profit-taking remains relatively low despite Bitcoin’s ascent to its new peak, suggesting the possibility of further gains. This restrained selling activity indicates that most holders are not eager to sell their coins, which historically bolsters the argument for sustained upward trends.
If BTC maintains solid footing above $120,000, higher targets around the $127,000 to $137,000 range become viable based on the double bottom pattern’s projections. With the chart structure and on-chain indicators favoring bulls, the potential for the asset to extend its rally remains promising.
