Key Takeaways
- Crypto analyst Ali Martinez believes Bitcoin price could soon reach $130,000.
- The expert is bullish on BTC deposite the latest slump owing to the formation of a head-and-shoulder pattern.
- However, ETF data and other indicators suggest increased volatility for BTC.
The recent fall of Bitcoin has shaken the investors, yet some analysts note that there is some potential for a comeback. Ali Martinez, a famous crypto strategist, believes that the market is possibly halfway to a type of classic reversal structure. “As long as $111,100 holds, Bitcoin can still shape the right shoulder before a breakout toward $130,000,” he posted on X. Here, he pointed to a possible head-and-shoulders setup.
Bitcoin Price Chart Signals Trend to Reversal
In the 4-hour BTC/USDT TradingView, the trend seems very obvious: a left shoulder in the last month of August, and a drop to create the head in the first month of September, and what seems to be the formation of the right shoulder now. The Fibonacci extensions indicate that in case this neckline breached, the possible target ranges between $120,955 and $126,996 will come into view and the 1.618 Fibonacci will be positioned around $124,989.
The phase plan presented by Martinez means that it will be a gradual rally, and the main resistance points will be at $115,507, $117,875. Thereafter, if Bitcoin price breaks out from other subsequent price levels, it may eventually bring BTC closer to the $130,000 target.
As a bonus to the bullish argument, Santiment data indicates that large holders purchased approximately 30,000 BTC in the last week. Whales purchasing aggressively has followed swift increases in the past and provided a buffer during periods of general selling.
ETF Outflows Throw a Spinner
Nevertheless, the flows in the market are not regular. Spot Bitcoin exchange-traded funds recorded withdrawals amounting to $466.9 million on Monday and Tuesday combined, as compared to consistent inflows that were experienced at the beginning of September. This change highlights a reserved attitude by institutional actors.
On Wednesday, the sentiment wavered back and forth like a pendulum as Bitcoin ETF inflows hit $241 million, balancing some of the outflows seen earlier in the week. These unpredictable fluctuations are a demonstration of how ETF actors are trading in defence, and Bitcoin is subject to sudden changes in course.
Risk Models Suggest Caution
Other signs of warning are beyond the ETF behavior. Bitcoin is now trading below the 0.95 band in the Supply Quantiles Cost Basis Model and this is one of the areas that usually indicates profit-taking among long-term traders. Traditionally, the level has been breached with downsizing below this mark being linked with bigger corrections, and the downsizing danger is projected between $105,000 and $90,000 levels.
At press time, Bitcoin price stood at $111,512, and has fallen by 4.67% in the last one week. The asset is still pegged below the level of 112,500 resistance. If BTC fails to recapture that level with the subsequent important supports being $110,000 and $108,000, it could witness further losses. In case these support levels break, analysts caution that a new logical target of $105,000 is in sight.
Meanwhile, all attention is on the $111,100 mark that is identified by Martinez. Its current position is likely to maintain the bullish trend, but a breakdown will change the tide towards the bears.
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