The recent performance of Bitcoin has reignited optimism in the crypto market, with even top critics acknowledging the potential for further price uptrends.

Today, Bitcoin briefly reclaimed the $58K price point, hitting an intraday high of $58,041 before encountering resistance. Notably, this impressive rebound comes just four days after reaching a monthly low of $52,598.

From that level to the recently recaptured $58K range, the premier asset has surged by 10.34% in less than a week. This comeback has drawn the attention of Peter Brandt, a veteran technical analyst with nearly five decades of experience.

Peter Brandt Now Bullish Again on Bitcoin, Targets $150K

Brandt shared a chart illustrating Bitcoin’s historical trends, showing how long BTC took to rise from its previous bear market bottom to its all-time high during this ongoing bull run. 

Specifically, the chart indicates that Bitcoin spent 73 weeks, or 511 days, to reach an all-time high of $73,734 back in March. It highlighted that a similar duration may be needed before achieving its next peak. 

Moreover, Brandt’s chart shows a potential target for Bitcoin around the $150K range. This price target aligns with his previous projections, where he revised his bullish outlook for Bitcoin from $120,000 to $200,000.

It is worth noting that Brandt’s optimistic chart comes just a few weeks after he had consistently issued bearish predictions for Bitcoin.

In one analysis, he forecasted a potential price drop to $48K, claiming Bitcoin might have already reached its peak for this cycle. However, his latest commentary marks a significant shift in outlook.

Factor Supporting the Bullish Outlook

Brandt’s current bullish stance is based on a potential breakout from a classic “Cup and Handle” formation on Bitcoin’s chart. He pointed to this pattern as a strong bullish signal for the leading cryptocurrency. 

The “handle” suggests a consolidation phase, and Bitcoin could be poised for a major upward move if it can break through key resistance. Brandt also invited another seasoned analyst, James Roppel, to weigh in on his analysis.

James Roppel, a long-time observer of the Cup and Handle pattern, responded to Brandt’s tweet with enthusiasm, noting that the chart made his “heart race with possibilities.” 

While acknowledging the risk of a failed breakout, Roppel remains bullish unless proven otherwise. Accordingly, he identified around $74,000 as a critical price level for Bitcoin Roppel, who is “MAX long” on Bitcoin, cautioned that failure to break through this level could pose a risk.

One market observer commenting on Brandt’s analysis suggested that a successful recapture of the $70K level could propel Bitcoin’s price to $300K.

Bitcoin experienced notable price movements early this week, with an impressive rally pushing the crypto above $58,000. 

Following a brief dip earlier in the day, Bitcoin’s value climbed in the evening, hitting a 5-day high. This surge coincided with active selling by short-term holders, as on-chain data reveals substantial movements of Bitcoin tokens.

Short-term Holders Take Advantage

According to recent data, short-term Bitcoin holders seized the opportunity to sell during the recent price increase. Approximately 14,816 BTC, valued at close to $850 million, was sold by these holders, per a disclosure from market watcher Ali Martinez.

Short-term #Bitcoin holders seized the recent price jump to offload approximately 14,816 $BTC, valued at nearly $850 million! pic.twitter.com/hiy37Gxz6X

— Ali (@ali_charts) September 10, 2024

This selling behavior aligns with a noticeable upward price movement, with Bitcoin rising from $54,000 to $57,500 between September 8 and 10. Notably, two price spikes occurred—first on September 9, followed by a larger increase on September 10. 

There are three key moments where significant amounts of Bitcoin aged 1-3 months were moved. The first spike was observed on September 8, with spent outputs reaching a level above 2,000 BTC. The second, larger spike occurred on September 9, peaking at over 4,000 BTC. The final peak was seen on recently, when the spent outputs surpassed 14,000 BTC.

Decline in Large Bitcoin Wallets

While Bitcoin’s price surged, data from the blockchain indicates a reduction in the number of large wallets in the past month.

Addresses holding between $10,000 and $100,000 in Bitcoin decreased by 3.39%, while wallets holding between $1 million and $10 million dropped by 2.83%. This reduction may reflect profit-taking by wealthier investors or institutional players.

The decline in large wallet addresses could be tied to profit-taking, signaling caution among wealthier investors. 

Traders Show Skepticism Despite Rally

Despite Bitcoin’s latest strong performance, some traders remain cautious about the longevity of the rally. Data from major exchanges like Binance and BitMEX indicate that a number of traders began shorting Bitcoin as the price neared its peak.

Santiment analysis suggests that many traders took bearish positions, expecting the price increase to be short-lived. However, while traders on both Binance and BitMEX bet against the rally, this bearish sentiment could contribute to further price increases.

Santiment noted that ongoing fear, uncertainty, and doubt (FUD) from these traders may drive prices higher as liquidations occur. Nonetheless, this dynamic between trader expectations and price movement continues to create uncertainty in the market.

The market braces for volatility over the next 36 hours, as Bitcoin sits at a make-or-break point on both the technical and economic fronts.

Bitcoin is once again at a crossroads. Over the next day and a half, the release of important economic data could influence the price of the firstborn cryptocurrency. 

Potential Impact of Upcoming CPI Data

The Consumer Price Index (CPI) report, expected tomorrow, will reveal important information about inflation trends, with multiple analysts predicting the potential for market volatility based on the results.

Current forecasts suggest headline inflation is likely to decrease year-over-year to 2.6%, a slight dip from 2.9% in the previous month. 

Meanwhile, core inflation, which excludes the more volatile food and energy prices, is expected to hold steady at 3.2%. On a month-over-month basis, both headline and core CPI are anticipated to increase by 0.2%. 

If the data aligns with these estimates, it may affirm current market expectations of a modest 25 basis point interest rate cut in the next Federal Reserve meeting. 

However, should the inflation numbers exceed predictions, concerns about stagflation may arise, especially given the softer economic indicators we’ve seen recently. An unexpectedly high CPI could prompt fears that inflation will remain stubborn, sparking worries about the Fed needing to take further action.

On the other hand, a downside surprise in the inflation data could indicate that the growth risks are becoming more prominent. 

In such a scenario, markets might interpret the Fed as being more likely to step in and support the economy sooner, potentially pushing risk assets like Bitcoin higher. 

Nonetheless, any significant deviation from expectations could trigger a “risk-off” sentiment, with stronger inflation figures likely to be a more potent driver of downward pressure on markets.

Key Technical Factors for Bitcoin

Interestingly, Bitcoin’s technical indicators suggest that the cryptocurrency is at a pivotal moment. Currently, Bitcoin is hovering around $56,940, right at a critical point on the daily chart, and the next move could determine the trend for the near future.

On the DMI, the +DI (blue line) recently surged but is now declining and stands at 18.75. The -DI (orange line) has been falling but remains higher at 25.53. The ADX (red line), which measures the strength of a trend, is currently at 24.38 and is slowly descending.

These signals indicate that while there may still be a bit more downside pressure, the strength of this current downtrend is weakening. However, with the ADX trending lower, it indicates a lack of a strong directional push at the moment. 

Bitcoin Support and Resistance Levels

Also, on the daily chart, Bitcoin sits just above a rising support trendline, which has been providing a buffer for the price since May. This upward-sloping line has been crucial in maintaining a bullish structure, even through periods of high volatility. 

If Bitcoin breaks below this line, it could trigger a larger sell-off, potentially dragging the price down to test lower Fibonacci pivot points.

In such a scenario, the immediate support is at S1 ($51,513.89), which aligns closely with the trendline. If Bitcoin holds above this level, it could pave the way for a rebound, with potential resistance at R1 ($64,241.96) and R2 ($68,173.67). 

However, a break below this support could see Bitcoin falling further toward S2 ($47,582.18) and possibly even as low as S3 ($41,218.14).

The upper resistance level at R3 ($74,537.70) may seem distant, but in the case of an unexpected bullish surge—perhaps triggered by favorable CPI data or a rate cut announcement—it’s not entirely out of reach.