A cryptocurrency trading expert has suggested that Bitcoin (BTC) may be on the verge of reaching a new all-time high of $150,000 in the coming weeks, based on a bullish pattern reminiscent of past record-breaking rallies.
This optimistic forecast follows Bitcoin’s reclaiming of the $99,000 mark over the weekend, aligning with the 50-day moving average (MA), which currently serves as a critical support level, according to insights from TradingShot in a TradingView post on January 6.
The popular online trading expert compared Bitcoin’s current movements to its price action earlier in 2024. Back then, a similar recovery of the 50-day MA preceded a rally that pushed the cryptocurrency to a record above $73,000.
Picks for you
The present pattern, which aligns with technical indicators like the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD), suggests another major rally is underway.
In both instances, the one-day RSI displayed bearish divergences with lower highs, signaling potential momentum shifts, while the MACD formed bullish crosses below the 0.00 level. This combination indicates a transition from bearish to bullish momentum, with the MACD cross widely seen as a strong buy signal.
In a similar scenario during the 2023-2024 cycle, Bitcoin’s second rally peaked at the 1.618 Fibonacci extension from its September 2023 low. If the current trend follows suit, the $150,000 price target appears achievable.
“The 2nd rally peaked on the 1.618 Fibonacci extension from the September 11 2023 Low, so if the pattern replication continues, we may see a peak above 150k,” the expert said.
Bitcoin’s bearish case
Despite the bullish setup, the expert cautioned that Bitcoin might trade sideways for a few more days before entering its second rally phase.
Indeed, after Bitcoin surpassed the $100,000 mark, the $150,000 target remains a possibility, bolstered by optimism following Donald Trump’s election victory, which is expected to be bullish for cryptocurrencies.
The target aligns with one set by banking giant Standard Chartered, which projects Bitcoin could hit $200,000 by the end of 2025.
In line with TradingShot’s projection of anticipated sideways trading for Bitcoin, another outlook by prominent cryptocurrency analyst Ali Martinez has cautioned that Bitcoin might see a drop to the $78,000 level before rallying.
According to Martinez, Bitcoin’s price is showing signs of a potential head-and-shoulders pattern, signaling a possible correction to the $78,000 range. The neckline is at $96,000, and a breakdown below this level could confirm the pattern.
However, he noted that if Bitcoin remains near $97,000, a close above $100,000 could invalidate the bearish setup and fuel further bullish momentum.
Bitcoin’s volatility hits historical low
Meanwhile, amid these projections, Bitcoin is showing signs of stability. Data shared by cryptocurrency analyst Miles Deutscher in an X post on January 6 noted that the leading digital currency is experiencing historically low volatility, nearly three times lower than during the 2021 bull run.
As the cryptocurrency hovers around the $100,000 mark, this compressed volatility is creating anticipation, as such periods of low price movement often precede significant price action, suggesting that a breakout, either upward or downward, could be imminent.
Bitcoin price analysis
At the time of reporting, Bitcoin was trading at $99,267, having rallied by about 1.5% in the last 24 hours. On the weekly chart, BTC has rallied over 5%.
Despite the relative stability, Bitcoin’s price is still teetering at crucial levels, with key support and resistance points around $96,000 and $100,000. A breakout above $100,000 could push the cryptocurrency to new highs, while failure to maintain support could trigger a correction.
Featured image via Shutterstock
