Key Points:
- For Bitcoin to reach price targets between $127,000 and $137,000, it must overcome a critical upcoming resistance barrier.
- Blockchain analytics suggest potential for further price increases, pinpointing $122,000 and $138,000 as crucial levels to monitor for risk.
Bitcoin (BTC) concluded September with a positive movement of 5.35%, recovering from a correction seen later in the month. Data from Lookonchain, a blockchain analytics platform, indicates that historically, Septembers with positive gains have often been followed by a significant price surge in October, dubbed “Pumptober”.
With the price of Bitcoin showing upward movement today, the question is whether historical trends will repeat, leading to substantial gains for BTC in October.
Double Bottom Pattern Points to $127,000 Target
Bitcoin’s price chart is exhibiting a double bottom pattern, considered a bullish indicator. This pattern generally forms when the price finds support at a similar level twice, followed by a breakout above a resistance level.
In Bitcoin’s instance, the two support levels appear near $113,000, with resistance around $117,300 acting as a “neckline”.
If buyers can successfully push the price above this resistance (the neckline), the technical target for this pattern is approximately $127,500. This projection is calculated by measuring the depth of the double bottom and adding it to the breakout point.
Furthermore, Bitcoin’s Relative Strength Index (RSI) has been trending upwards from a neutral point, suggesting increasing buying strength.
Successfully surpassing the $118,000-$119,000 range, where a significant number of short positions (nearly $8 billion) are at risk of liquidation, would further confirm the breakout and increase the likelihood of reaching the $127,500 target.
Symmetrical Triangle Suggests Potential for $137,000
Analyzing Bitcoin’s daily chart reveals it’s also forming a symmetrical triangle pattern.
This pattern is identified by converging trend lines connecting lower highs and higher lows, and it commonly signals a large price move upon breaking out of the formation.
The height of this triangle pattern indicates a potential target price around $137,000, which is more than 18% higher than the current price. Interestingly, this target aligns closely with the 1.618 Fibonacci extension level near $134,700.
Blockchain Data Indicates Further Room for Growth
According to blockchain data, Bitcoin is trading below its “heated” risk threshold, suggesting the current price increase might continue before short-term traders become overly leveraged.
Data from Glassnode‘s Short-Term Holder Cost Basis Model places the average purchase price of recent buyers around $102,900.
The model flags $122,000 as the beginning of a “heated” zone and $138,000 as an “overheated” zone, levels that have historically coincided with market peaks.
Related: Bitcoin Showing Stronger Correlation with Gold as Price Approaches $117K
In simpler terms, should the expected “Pumptober” rally materialize, $122,000 will be the initial challenge, followed by $138,000, which could act as a ceiling before a potential price drop.
This content is for informational purposes only and should not be interpreted as financial advice. Investing in cryptocurrencies carries risk, and individuals should conduct thorough research before making any investment decisions.