Bitcoin might be gearing up for another big price jump, potentially reaching six figures again. A crypto analyst, Rekt Capital, thinks so. He says Bitcoin’s recent price action puts it back on track for a $160,000 target, but a few things need to happen first.
The Bull Flag Breakout
Rekt Capital’s analysis shows Bitcoin not only recovered from a “Bull Flag” pattern but is now trading above it. This is huge because a few weeks ago, Bitcoin failed to break out of this pattern, leaving the market unsure what would happen next. Holding the $119,000 level as support confirms this breakout and sets the stage for a potential rally. While a small dip back into the pattern is possible, as long as $119,000 holds, the bullish trend should continue. The fact that Bitcoin recovered from several recent dips adds to the positive outlook.
Hurdles to $160,000
Despite a recent 9% drop, Bitcoin is still in what Rekt Capital calls a “Price Discovery Uptrend 2.” This means the recent dip didn’t break the overall upward trend. However, we’re now in week 6 of this uptrend, and historically, weeks 5 and 6 have been tricky, sometimes marking the peak of a price increase. This time might be different, but the price action will be key.
A major resistance level sits around $126,000. Breaking through this in the next couple of weeks could send Bitcoin soaring towards $160,000. But if it fails to break through $126,000, it could lead to a pullback, delaying the move to higher prices.
Key Levels to Watch
The two most important price points to watch are:
- $119,000 (Support): Holding above this level is crucial for maintaining the bullish trend.
- $126,000 (Resistance):
Breaking through this level could trigger a significant price increase.
How Bitcoin performs around these levels will determine whether the $160,000 target remains a realistic goal in the coming weeks.
