Bitcoin’s recent price action is holding firm above the $108,000 level despite a string of minor pullbacks in recent trading sessions. Notably, CoinGecko data shows that the Bitcoin price has climbed to an intraday high of $109,116, but it wasn’t able to hold above and has retreated slightly lower at the time of writing.
Volatility has been relatively subdued for Bitcoin above $106,000. However, Doctor Profit, a well-followed crypto analyst, believes Bitcoin is still in a bullish structure, and he outlined two likely paths for the next major move.
Bull Flag And Breakout To $130,000 With Retest
The first scenario outlined by Doctor Profit involves a breakout to a price level between $113,000 and $114,000, which would take Bitcoin to a new all-time high in the process. However, this all-time high would be very brief. According to this scenario, a sharp correction is expected to follow once Bitcoin reaches this range.
Related Reading
This correction will send the price back down into the $92,000 to $93,000 range to fill a CME gap and tap into a major liquidity pool. Rather than causing panic, the analyst views this move as part of a bullish continuation.
This potential retracement zone is clearly marked on Doctor Profit’s daily candlestick chart with the message “Add more if market allows.” The pullback, if it happens, would serve to reset the market and initiate a bounce before Bitcoin resumes its upward trajectory to $120,000 again.
Direct Rally To $120,000 Without Retest
The second path skips the correction altogether. In this scenario, Bitcoin breaks through the flag resistance to rally past $113,000. From there, the scenario sees Bitcoin continuing upward without returning to the lower support zones. The move hinges on the ability of Bitcoin to gain momentum rapidly and lead to a strong push toward $120,000. Doctor Profit points out that this option is a more aggressive bullish continuation, and both scenarios are valid for bullish price targets in the long term.
Related Reading
He also debunked fears surrounding the sudden movement of a dormant Satoshi-era whale wallet containing 80,000 BTC. The analyst believes the transfer was likely an over-the-counter deal between a large private entity and an institution or government and not a sign of looming sell pressure. Volatility is going to be very low in the coming days, as there are no macro market events that can cause price volatility. FOMC meeting minutes are due Wednesday, and there are going to be US unemployment claims on Thursday, but both are low-volatility events.
Nonetheless, the $113,000 to $114,000 price range is the most important level to watch in both scenarios. What follows from there, a sharp correction or a straight continuation, will define the speed of the next leg to $120,000. At the time of writing, Bitcoin is trading at $108,270.
Featured image from Pixabay, chart from Tradingview.com
