- Bitcoin forms a head and shoulders pattern, with $117,952 as the key breakout threshold.
- Fibonacci levels at $113K and $112K mark crucial support before a potential rally to $130K.
- Historical “Uptober” trend and rate cut expectations raise prospects of Bitcoin reaching $165K.
Bitcoin retraced to $112,000 as anticipated, and traders are monitoring whether buying pressure will form the right shoulder before a breakout to $130,000. The current structure showed consolidation, with price action supported around $111,000 to $113,000 despite recent declines.
Bitcoin Technical Setup
According to an analysis prepared by Ali Charts, Bitcoin traded near $112,807 after forming a head and shoulders reversal pattern. The left shoulder developed in late August, the head appeared near $107,200, and the right shoulder formed close to $113,600. The neckline remained at $117,952, considered the breakout threshold.
Fibonacci retracement levels defined supports at $111,266 and $109,673, with the 0.618 level placed near $113,677. A successful move above the neckline positioned extension targets at $121,048, $122,096, $125,104, and $127,132. A measured projection also showed potential toward $129,740.
Analysts noted that volume supported accumulation, while higher lows from $107,200 reflected an ascending setup. Kamran Asghar observed Bitcoin at $114,410 after a retracement from $118,000. He noted current positioning near the 0.25 Fibonacci level, with possible bounces near $113,000 and $112,000. Resistance above $124,000 was clearly marked, and consolidation could precede upward continuation.
Market Performance and Seasonal Trends
CoinMarketCap data showed Bitcoin trading at $112,620, reflecting a 2.4% monthly decline. Market capitalization reached $2.24 trillion, while 24-hour trading volume surged to $54.01 billion, marking a 140.12% rise. Circulating supply stood at 19.92 million BTC, approaching the 21 million maximum supply.
CoinGlass records indicated Bitcoin traded positively in 10 of the last 12 Octobers, earning the phrase “Uptober.” Gains included 48% in 2017 and 40% in 2021. Analysts stated that a repeat could see Bitcoin reach around $165,000 from current levels.
According to Mister Crypto, expectations for a Federal Reserve rate cut next month stood at 92%, fueling liquidity prospects. Arthur Hayes, co-founder of BitMEX, added that crypto markets could enter “up only mode” once liquidity drains ease.
