Big Rally or the End of the Bull Run: What’s Next for BTC?
The price of the leading digital asset has lost some steam after hitting a new all-time high above $126,000. However, one crucial indicator suggests that another parabolic move could be knocking on the door.
Big step in the next 100 days?
The technical analysis tool in question is Bitcoin’s weekly Bollinger Bands, which consist of upper and lower bounds that show how far the price deviates from the average. According to X user Tony “The Bull” Severino, the lines recently appeared tightened reaching record levels.
Such a development suggests that the price of BTC has consolidated and could be poised for a huge move in either direction. The analyst assumed it could take about 100 days to “get a valid breakout or outage.”
“Whichever direction is chosen, it will lead to a trend movement accompanied by high volatility,” he predicted.
Severino also warned investors that expanding such a scheme could result in “head fakes.” In other words, the price may fall briefly before rising, or vice versa.
“This has the potential to send Bitcoin parabolic, or end the three-year bull rally,” he concluded.
Best-case and worst-case scenarios
The majority of analysts on X seem optimistic that BTC is yet to reach new highs during this cycle. Friedrich and BitBull in mind pumping to a new all-time high of $150,000 in the following months. The latter argued that “big money is now waiting for gold to form a local top,” predicting the primary cryptocurrency to outperform the yellow metal in the fourth quarter.
The impressive inflows into spot BTC ETFs since the beginning of the month, combined with dwindling foreign exchange reserves, support the bullish thesis. Recently, the amount of assets stored on such platforms fell to around 2.4 million, the lowest level in seven years. This means that an increasing number of investors are shifting their holdings to self-custodial wallets, reducing immediate selling pressure.
At the same time, some analysts believe that a painful crash is also a plausible option. An example is Ali Martinez, who said that the worst case scenario for BTC is to be rejected at $124,000 and then fall to $96,000 and later collapse to $70,000.
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