Key takeaways:
Bitcoin has surpassed the short-term holder cost basis at $114,000, indicating a resurgence in demand and potential for additional gains.
Experts suggest that Bitcoin may continue its upward trajectory, aiming for targets above $150,000.
On Monday, Bitcoin (BTC) price regained the $115,000 level, recovering some of the losses incurred during Friday’s unprecedented sell-off, which led to over $20 billion in liquidations on centralized exchanges.
The 10%-15% price drop impacted BTC’s technical indicators, but traders maintain that Bitcoin’s macro outlook remains positive, with $150,000 still in sight.
Bitcoin bounces back above critical trendline
The BTC/USD pair is currently trading 8% above the $107,500 low reached on Friday, according to Cointelegraph Markets Pro and TradingView.
This recovery indicates that BTC is back above its short-term (STH) cost basis, hinting at the possibility of further gains.
Related: $120K or end of the bull market? 5 things to know in Bitcoin this week
The STH cost basis, or realized price, reflects the average purchase price of BTC for investors who have held Bitcoin for fewer than 155 days.
“BTC has moved above the STH cost basis of $114K,” noted Frank Fetter, a quant analyst at Vibes Capital Management, adding:
“The show goes on.”
The STH cost basis trendline serves as support during corrections in Bitcoin’s bull market, and reclaiming it enhances investor confidence that the BTC/USD pair could achieve further gains.
Additional insights from Glassnode also emphasize that the cost basis of the 1w-1m holders has once again surpassed the 1m–3m cost basis, indicating rising momentum in demand and net capital inflows, as traders purchased during the dip.
Bitcoin’s upward trend stays strong
The latest flash crash of Bitcoin below $110,000 was brief, as traders confirmed that the upside potential for BTC remains intact.
“The key factor is that Bitcoin is maintaining support above the 20-Week MA,” which currently sits at $113,300, explained Michael van de Poppe, founder of MN Capital, in a post on X on Sunday.
Van de Poppe asserted that Friday’s decline below this benchmark “created a significant opportunity” for buyers, and reclaiming it suggests “we are continuing the uptrend.”
Supporting this view, fellow Mickybull crypto expert stated that Bitcoin “remains in bullish territory from a structural price action standpoint,” adding:
“As long as $BTC and $ETH continue to perform well on the higher time frame charts, the bullish sentiment persists.”
Daan Crypto Trades asserted that his “baseline expectation for this cycle has always been $120K-$150K.”
Referring to Bitcoin’s rainbow price chart indicator, the analyst noted that the “light green/yellowish range ($140K-$200K)” would likely be an optimal point to begin scaling out more aggressively once prices reach those thresholds.
Crypto analyst Jelle mentioned that Bitcoin has undergone a “2017-style washout” yet still holds critical levels, adding:
“I’m quite comfortable with how this appears. The target remains $150,000.”
As reported by Cointelegraph, Bitcoin is currently testing the “golden cross,” a bullish technical formation that has previously shown potential for rallies of 2,200% in 2017 and 1,190% in 2020. A confirmed breakout could lead to a parabolic price surge for Bitcoin in the coming weeks.
This article does not offer investment advice or recommendations. Every investment and trading decision carries risk, and readers should perform their own research before making any choices.
