Bitcoin surges 108% to four-month high, targets $116,000

Bitcoin has surged past $108,000, reaching its highest point in four months. This surge has broken through a significant bullish pattern, with traders now setting their sights on the $116,000 mark as the next major target. The cryptocurrency's momentum is strong, and multi-month charts indicate no bearish signals, leading many to believe that a new all-time high is imminent.

However, amidst the optimism, some experts are cautioning about potential downturns. One analyst has warned of a substantial correction once the current rally peaks, suggesting that Bitcoin could plummet to as low as $2,000–$3,000 in the future. This prediction is based on historical patterns and technical wave counts, which indicate that Bitcoin could break its all-time high soon, driving further gains. Nevertheless, traders must adhere to the correct wave structure to avoid misinterpreting ongoing movements.

Post the $140,000 mark, while some might anticipate an immediate peak, analysts suggest there is still room for growth before Bitcoin enters a major correction phase. Ultimately, Bitcoin is expected to undergo a supercycle correction back down to $3,000–$2,000 once the top is reached—a cycle that has been observed repeatedly in its history.

Adding to the uncertainty, the U.S. Dollar Index is weakening and could slide further, which often benefits risk assets like Bitcoin. However, broader economic issues, such as the recent U.S. credit downgrade and rising bond yields, might present new challenges for crypto markets. There is also speculation that the Federal Reserve may intervene with emergency liquidity measures if financial markets become unstable again, adding more volatility to Bitcoin’s trajectory.

Despite these risks, Bitcoin still moves closely with risky assets like stocks, so it will take time before it truly moves independently. This cycle, the leverage in Bitcoin is lower compared to the 2021 peak, which could result in less extreme price swings. Analyst Michaël van de Poppe predicts that Bitcoin is heading to new all-time highs faster than expected, with targets of $120,000, $150,000, and even $200,000 on the horizon as more people become frustrated with the dollar’s ongoing devaluation.