Key takeout:
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BTC must clear the following important resistance levels to unlock the target from $127,000 to $137,000:
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Data on the chain shows the rooms to earn $122,000 and $138,000 as key risk levels.
Bitcoin (BTC) closed in September with a gain of 5.35%, shaking the month-end correction. Historically, such green September has set the stage for a bullish “Pumptober,” according to Onchain Data Resource LookonChain.
With Bitcoin already increasing, will history repeat itself again in October with a massive BTC gain?
BTC Price Double Bottom Target $127,000
Bitcoin’s daily charts flash a classic double bottom setup. This is a bullish reversal pattern where the price bounces twice from a similar support level before it gets higher.
For BTC, the two troughs appear near $113,000, with neckline resistance sitting around $117,300.
If Bulls could push prices more decisively than Nectline’s resistance, the structure’s technical goal is around $127,500. That projection is derived by measuring the depth of the pattern and adding it to the breakout level.
Meanwhile, Bitcoin’s relative strength index (RSI) has risen from the neutral territory, suggesting that the bull is beginning to regain momentum.
Clearing the fragile $118,000-119,000 zones with nearly $8 billion shorts is a greater chance of verifying breakouts and reaching double-bottom targets.
Symmetrical triangle sets Bitcoin at $137,000
Bitcoin also trades within the large symmetrical triangle patterns of daily charts.
This structure is formed by converging trendlines with lower highs and higher lows, and typically precedes sharp breakouts as prices are compressed towards the vertices.
The height of the triangle projects a target of nearly $137,000, more than 18% from the current price. This target is closely matched with the 1.618 Fibonacci expansion level around $134,700.
ONCHAIN data shows that BTC is not at the top
Bitcoin remains below the “heated” risk level, suggesting that there is room for short-term traders to be extended to gatherings before they are over-expanded.
Cryptocurrency’s short-term holder cost-based model averages around $102,900 in recent purchase prices, according to GlassNode data.
The model flags the heating zone at $122,000 as the first significant threshold and the overheating zone at $138,000 as a level that has often marked cycle peaks in the past.
Related: Bitcoin revives gold correlation as BTC prices are close to $117K
In other words, if you have legs in this “Pumptober” rally, $122,000 is the next short-term test, and $138,000 is the potential ceiling before another possible fix is made.
This article does not include investment advice or recommendations. All investment and trading movements include risk and readers must do their own research when making decisions.