Key point:
Bitcoin’s momentum continues to accelerate above $113,000, leading traders to predict a rally to $150,000.
Bitcoin (BTC) made a new all-time high above $113,788 on Thursday, and several analysts expect the uptrend to continue. 10x Research head Markus Thielen told Cointelegraph that BTC has a 60% probability of rising more than 20% in the next two months.
Milk Road co-founder Kyle Reidhead was even more optimistic, projecting a target of $150,000 for BTC in his post on X.
Could BTC continue higher, or will breaking out to a new all-time high prove to be a bull trap? Let’s analyze the charts to find out.
BTC price prediction
Bitcoin broke above the $110,530 resistance on Wednesday and hit a new all-time high at $113,788 on Thursday. However, the bears are expected to pose a solid challenge near the neckline of the inverse head-and-shoulders pattern at $113,800.
Buyers will have to drive the price above the neckline to complete the bullish setup. That will clear the path for a possible rally to the pattern target of $150,000.
Sellers are likely to have other plans. They will try to pull the price back below $110,530. If they succeed, the BTC/USDT pair may slide to the moving averages.
Buyers are expected to defend the moving averages with all their might because a break below the 50-day simple moving average (SMA) ($106,774) may accelerate selling. That will also form a negative divergence on the relative strength index (RSI), signaling a deeper correction to $100,000.
Related: Bitcoin treasury companies acquire record 159,107 BTC in Q2
The bulls are trying to maintain the price above the breakout level of $110,530. If they manage to do that, the pair could challenge the overhead resistance at $112,000. This is a crucial near-term resistance to watch out for because a break above $112,000 could propel the pair to $116,571.
The first sign of weakness will be a break below $110,530. That signals profit-booking by short-term buyers. The bears will then try to strengthen their position by pulling the price below the 50-day SMA. If they can pull it off, the pair may slump to $107,000 and then to $105,000.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
This article is produced in accordance with Cointelegraph's Editorial Policy and is intended for informational purposes only. It does not constitute investment advice or recommendations. All investments and trades carry risk; readers are encouraged to conduct independent research before making any decisions. Cointelegraph makes no guarantees regarding the accuracy or completeness of the information presented, including forward-looking statements, and will not be liable for any loss or damage arising from reliance on this content.
