FameEX Hot Topics | Analyst Calls Bitcoin Dip the 'Perfect Bottom', BTC Set to Rally to $148K

Bitcoin is currently retesting a crucial support level that has historically been a catalyst for significant rallies. After reaching a record high of approximately $123,250 three weeks ago, Bitcoin has experienced a 7.50% drop. However, analysts believe this may be the final shakeout before a potential breakout toward $150,000.

On Sunday, Bitcoin regained its 50-day exponential moving average (50-day EMA) as support, after briefly dipping below it the day before. The 50-day EMA has proven to be a reliable support level in the past, often triggering fresh rallies. A similar drop below this support occurred in June, which preceded a sharp 25% rebound in the price of Bitcoin.

Bitcoin's current price action seems to be repeating this pattern. According to analyst BitBull, even if Bitcoin drops to the $110,000–$112,000 range, it would create a "perfect bottom" for the cryptocurrency. This could provide a solid foundation for the next upward leg in Bitcoin's price, setting the stage for a strong rally.

The 50-day EMA aligns with the neckline of Bitcoin’s inverted head-and-shoulders (IH&S) pattern, a bullish reversal setup. After breaking above the neckline, Bitcoin pulled back to retest it, which is a typical post-breakout move. The bounce from this support further validates the bullish trend, reinforcing the notion that Bitcoin could be entering the continuation phase of its breakout.

The IH&S pattern, now confirmed with the neckline retest, targets a move toward $148,250. This level is near the $150,000 mark that many analysts predict for Bitcoin’s price by 2025, with some anticipating this target to be reached around October. On-chain data also suggests that this ongoing dip may pave the way for another major breakout, fueling optimism for a significant price surge.

Disclaimer: The information provided in this section is for reference only and does not represent any investment advice or the official views of FameEX.