Bitcoin could continue its current form into uncharted territories if it closes around the $118,000 to $120,000 price range.
It’s “Uptober”, and Bitcoin is already living up to the buzz. Typically marked with positive price actions, Bitcoin has started October as bullish as many expect, with its 2.86% rally to reclaim $117,000.
Could we see more highs? Analyst Egrag Crypto believes so. In his Wednesday Bitcoin price prediction, he identified encouraging developments for Bitcoin, uncovering what needs to happen for the upward trend to continue.
Positive Signs for Bitcoin
Egrag shared that Bitcoin has closed above a key support on the daily timeframe, which, according to him, is a positive sign. The chart accompanying the analysis shows that Bitcoin rebounded extensively from the $112,000 support level on September 30, closing above it on both the daily and monthly timeframes.
While this shows that Bitcoin seems headed in the right direction, the analyst noted that one of two things can happen from here. Currently, BTC trades within a symmetrical triangle, with prices now close to the tip of the structure.
Bullish Case for Bitcoin
He noted that if Bitcoin closes with three daily candlesticks around $118,000 and $120,000, it could turn extremely bullish for the cryptocurrency. Remarkably, the price range aligns with a descending channel, where Bitcoin earlier failed to sustainably trade above during its rally to the all-time high of $124,457 in August.
Particularly, Egrag suggested that closing above the $118,000 to $120,000 supply zone could take Bitcoin to a new all-time high of $128,336, aligning with the 1.414 Fibonacci extension. From the current price of $117,000, this represents a 10% increase.
Bearish Case for Bitcoin
Meanwhile, if Bitcoin fails to break to the level, the market commentator suggested it would continue to consolidate within its symmetrical triangle. This trend will see BTC move sideways to fill up the triangle.
His chart indicates a key support level around $109,449, representing a 6.4% retracement from this point. Nonetheless, a drop toward this seems less likely right now as Bitcoin continues to trend higher at the time of writing.