Bitcoin Targets $135,000 Before Correction Says Analyst

Katie Stockton, the founder and managing partner of Fairlead Strategies, has predicted that Bitcoin could reach $135,000 before experiencing a significant market correction. This prediction comes after Bitcoin's recent all-time high. Stockton's firm creates "measured move projections" from breakouts, and assuming the previous uptrend continues, they have set an intermediate-term objective of $135,000 for Bitcoin. She also noted that stocks tracking Bitcoin markets are likely to perform well due to the positive action across the universe of cryptocurrencies, including movements in Ether and XRP.

Stockton's analysis suggests that Bitcoin’s recent price behavior aligns with past trends seen in strong bull markets. The current structure shows a series of higher highs and higher lows—key characteristics of a continuing uptrend. If this pattern holds, $135K is well within reach. Despite the upbeat forecast, Stockton also warned of a possible corrective phase once Bitcoin hits the $135,000 level. This potential pullback would be a healthy part of the market cycle and not necessarily a sign of a larger downturn.

Key factors that could trigger a correction include overbought technical indicators, shifts in investor sentiment, and broader market influences or regulatory news. Stockton emphasizes that corrections are natural and often provide buying opportunities in longer-term bull markets. Investors and traders are advised to keep an eye on key price points: $100K, which may serve as a psychological resistance, $120K, next intermediate barrier, and $135K, the projected high before correction. These levels could help traders strategize entries and exits during Bitcoin’s current bullish phase.

Stockton's prediction is not an isolated one. Other analysts have also made similar forecasts. Markus Thielen, the head of research at 10x Research, projected that Bitcoin could reach $133,000 based on the July 10 breakout signal, which historically leads to an average 20% rally over the following two months. Thielen also expects some near-term consolidation followed by a push toward $133,000, with a year-end target of $160,000 still in sight. Nick Ruck, the director of LVRG Research, also remains optimistic about Bitcoin's potential to continue its rally, pending no sudden black swan events. Technical analysts have tagged $132,000 to $138,000 as a reasonable short-term target before momentum slows.

Bitcoin's recent breakout from a multi-week sideways channel reached an all-time high of $122,871 before retreating back below $120,000 during early trading. This breakout is seen as an incredibly bullish signal, especially given the current environment. However, retail buyers are still absent from the crypto market, with the rally being driven by institutional capital. Typical signs of retail involvement, such as soaring search traffic and crypto app rankings, are absent, and retail is unlikely to get involved until Bitcoin reaches around $150,000 and the fear of missing out (FOMO) kicks in.

Despite the recent surge, Bitcoin is still a relatively small asset class compared to major asset classes such as gold, equities, real estate, and bonds. The big move increased Bitcoin’s market capitalization to $2.4 trillion, enabling it to become the world’s fifth-largest global asset. However, in terms of asset classes, it remains a minor player.