Bitcoin's Ascending Channel Suggests 29% Gain to $134,000

Bitcoin (BTC) has been consolidating just below $105,000, and an analyst has identified a historical trend that could drive the leading cryptocurrency to a new all-time high in the coming weeks. Since hitting a low in early April, Bitcoin has been moving in a clear $10,000 step-like pattern, breaking through $74,000, $84,000, $94,000, and now consolidating near $104,000. This consistent progression has seen each primary level tested and breached, forming a well-defined upward channel.

According to a prominent crypto analyst, this formation suggests that Bitcoin is trading within an ascending channel, indicating room for continued gains. If the channel holds, the next potential milestones are $114,000, $124,000, and ultimately $134,000, a key target projected for late June or early July. However, the bullish structure comes with risks. A breakdown below the channel’s lower boundary could trigger a sharp correction, with possible support retests around $94,000 or even $84,000.

Adding to the bullish sentiment, another analyst noted that Bitcoin could aim for a new high near $120,000, provided it maintains support above $90,000. This analysis was based on the “Cumulative Value Days Destroyed” (CVDD) indicator, which signals that Bitcoin is currently in a healthy accumulation phase. Historically, this metric has identified market tops and bottoms, and the current trend suggests a potential blow-off top around $120,000. According to the chart, Bitcoin is now in the final stages of accumulation. The CVDD is $34,153, while major resistance is $124,088. Support remains at $90,000, an area that aligns with key psychological and technical levels.

Amid this optimistic outlook, Bitcoin has recently hovered between $104,000 and $105,000. Analysts believe the asset may be consolidating within a bullish flag, a continuation pattern following its strong surge from $74,400 to $105,900. That rally was fueled by margin liquidations and strong spot demand, backed by billions in BTC ETF inflows. By press time, Bitcoin was trading at $102,977, down about 0.6% on both the daily and weekly charts. Still, BTC remains well above its 50-day simple moving average (SMA) of $90,993 and its 200-day SMA of $86,134, reinforcing strong bullish momentum. The gap between the current price and these moving averages suggests the uptrend remains intact, even if a short-term pullback occurs.

Despite the optimistic outlook, some traders and investors are cautious about the potential for a significant price drop before any meaningful climb can happen. They point to an unfilled CME gap between $91,970 and $92,520 as a potential obstacle to Bitcoin's upward trajectory. According to one trader, Bitcoin would need to drop around 12% to close this gap, which could lead to a 33% correction before a final push to the predicted $130,000 price level. The analyst remains optimistic about Bitcoin's potential for growth. They predict that Bitcoin could rally through the $130,000 to $140,000 Fibonacci levels before experiencing a correction, followed by a final push to the $175,000 price level. This prediction is based on historical EMA breakouts and a 10X extension from 2017’s $20,000 peak, which the analyst believes is a reliable indicator of Bitcoin's cycle top.

It is important to note that these predictions are just that - predictions. The actual price movements of Bitcoin are subject to a wide range of factors, including market sentiment, regulatory developments, and technological advancements. As such, investors should approach these predictions with caution and conduct their own research before making any investment decisions. In conclusion, while some analysts are predicting significant price movements for Bitcoin in the near future, it is important to approach these predictions with caution. The actual price movements of Bitcoin are subject to a wide range of factors, and investors should conduct their own research before making any investment decisions.