Bitcoin's recent price action remains firm above $108,000 despite a series of small pullbacks in recent trading sessions. Notably, data from CoinGecko shows that the price of Bitcoin rose to a daily high of $109,116 but failed to hold above it and has slightly decreased at the time of writing.
Volatility has been relatively mild for Bitcoin above $106,000. However, Doctor Profit, a widely followed cryptocurrency analyst, believes that Bitcoin is still in a bullish structure, and he has outlined two potential paths for the next major move.
Bull Flag and Breakout to $130,000 with a Retest
The first scenario outlined by Doctor Profit involves a breakout to the price level from $113,000 to $114,000, which would bring Bitcoin to a new all-time high in the process. However, this all-time high will be very short-lived. According to this scenario, a strong correction is expected to occur after Bitcoin reaches this range.
This correction will push the price down to the $92,000 to $93,000 range to fill the CME gap and tap into a large liquidity pool. Instead of causing panic, the analyst views this move as part of a continuation of bullish momentum.
This potential retracement area is clearly marked on Doctor Profit's daily candlestick chart with the message 'More if the market allows.' The retracement, if it occurs, will help reset the market and start a recovery before Bitcoin continues its upward trajectory to $120,000 once again.
Direct Price Increase to $120,000 Without a Retest
The second scenario completely bypasses the correction. In this scenario, Bitcoin breaks through the flag resistance to rise above $113,000. From there, the scenario shows Bitcoin continuing to rise without returning to lower support areas. This move depends on Bitcoin's ability to accelerate quickly and lead to a strong surge to $120,000. Doctor Profit indicates that this option represents a continuation of stronger bullish momentum, and both scenarios are valid for long-term price targets.
He also dismisses concerns surrounding the sudden move of a dormant Satoshi-era whale wallet containing 80,000 BTC. The analyst believes that the transfer is likely an over-the-counter deal between a large private entity and an organization or government, rather than a sign of impending selling pressure. Volatility will be very low in the coming days, as there are no macro market events that could cause price fluctuations. The minutes from the FOMC meeting will be released on Wednesday, and there will be U.S. unemployment claims on Thursday, but both are low-volatility events.
However, the price range from $113,000 to $114,000 is the most critical level to watch in both scenarios. What happens next, a strong correction or a continued surge, will determine the pace of the next leg up to $120,000. At the time of writing, Bitcoin is trading at $108,270.