TLDR
- Bitcoin has formed a double-bottom pattern with price target potentially reaching $127,000
- BTC price rose from $108,650 to nearly $114,000 in two consecutive days
- U.S. government shutdown risks and upcoming NFP data may benefit Bitcoin price
- Institutional accumulation continues with Strategy Inc. adding 196 BTC worth $22.1 million
- Technical indicators show Bitcoin breaking above 50-day and 100-day EMAs with positive RSI and MACD
Bitcoin (BTC) has shown strong signs of recovery in recent days, climbing from a low of $108,650 to nearly $114,000 in just 48 hours. This price movement has created a notable double-bottom pattern on the daily chart, suggesting a potential upward trajectory for the world’s largest cryptocurrency.
The double-bottom formation consists of two low swings with a neckline at $117,875. Technical analysis indicates that if Bitcoin breaks above this neckline, the price could target approximately $127,000. This would exceed the year-to-date high of $124,200.
Supporting this bullish outlook, Bitcoin has already moved above both the 50-day and 100-day Exponential Moving Averages (EMAs). The Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) indicators are also pointing upward, reinforcing the positive momentum.
Trading volume has been robust, with daily volume reaching $62.2 billion as Bitcoin surged 3.62% in 24 hours. However, the RSI has spiked to 83, indicating overbought conditions that could lead to a brief consolidation phase.
Political and Economic Catalysts
The potential U.S. government shutdown looms as Democrats and Republicans remain at odds over spending bills. Republicans are advocating for a clean spending bill, while Democrats aim to implement policies on health and Medicaid.
A government shutdown could benefit Bitcoin as it would likely impact the economy, with the government being one of the top spenders in the United States. This scenario might increase the probability of the Federal Reserve continuing to cut interest rates to mitigate recession risks.
Economic expert Mark Zandi recently noted that while recession risks have decreased, they remain “uncomfortably high.” He pointed out that current economic growth is primarily driven by AI spending and by wealthy individuals who have benefited from asset valuation increases.
The upcoming U.S. non-farm payrolls (NFP) data, expected this Friday, will provide further insights into the American labor market’s health and help predict the Federal Reserve’s interest rate decisions.
Institutional Confidence Remains Strong
Institutional conviction in Bitcoin continues to grow. Michael Saylor’s Strategy Inc., the largest public holder of Bitcoin, acquired an additional 196 BTC worth $22.1 million at an average price of $113,048 during last week’s dip.
This acquisition brings Strategy’s total holdings to an impressive 640,031 BTC, valued at over $47 billion. Despite the company’s stock (MSTR) falling to a six-month low amid Bitcoin’s volatility, its long-term performance remains extraordinary—up 96% in the past year and more than 2,000% over five years.
On-chain data shows more Bitcoin leaving exchanges than arriving, indicating accumulation and reduced selling pressure. Funding rates have also cooled, signaling a healthier foundation for sustainable growth.
Market observers note that a decisive close above $115,000 would confirm bullish momentum as Bitcoin enters the final quarter of the year, often referred to as “Uptober” by crypto enthusiasts due to Bitcoin’s historical tendency to rally during this month.
Technically, BTC/USD has broken out from a descending channel that constrained prices through mid-September. The rally cleared both the 50- and 100-period Simple Moving Averages (SMAs), with $114,000 now serving as near-term support.
For traders, a sustained close above $114,700 supports long positions with upside targets at $116,150 and $117,850. However, downside risks remain if support at $113,000 and $112,600 is lost, which could open a path toward $110,350 and $108,700.
Bitcoin’s performance may set the tone for other cryptocurrencies like Ethereum, XRP, and Solana, each positioned to follow higher in Q4.
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Source: https://blockonomi.com/bitcoin-btc-price-double-bottom-pattern-hints-at-potential-127000-target/