Bitcoin (BTC) has concluded September with a notable gain of 5.35%, shaking off a correction in the late month. Historically, such a green September has set the stage for a bullish “pump,” according to Onchain Data Resource Lookonchain. This phenomenon has sparked interest in whether Bitcoin will repeat its story with massive gains again in October.
Looking at the daily chart of Bitcoin, a classic double bottom setup is visible, which is a bullish reverse pattern that forms when the price bounces off a similar support level twice before breaking higher. In BTC’s case, the two troughs have occurred near $113,000, with a neckline resistance around $117,300.
The technical target of the structure points to around $127,500 if bulls manage to bring the price decisively over the neckline resistance. This projection is derived by measuring the depth of the pattern and adding the breakout level.
BTC Price Projections and On-Chain Data
The relative strength of Bitcoin (RSI) has gotten higher out of the neutral territory, which indicates that the bulls are starting to get back on their swing. Deleting the zone of $118,000 to $119,000, in which shorts are susceptible to almost $8 billion, would continue to validate the breakout and increase the likelihood of the double bottom destination.
On-chain data show that Bitcoin still has room to execute, with $122,000 and $138,000 marking important risk levels. According to Glassnode, the short-term holder cost basis model of the cryptocurrency indicates an average purchase price of around $102,900.
Symmetrical Triangle Pattern and Fibonacci Extension
Bitcoin is also acting within a large symmetrical triangle pattern in the daily chart. This structure, which is formed by convergent trend lines with lower highs and higher lows, typically precedes a sharp breakout when the price is compressed to the apex.
The magnitude of the triangle projects a target of nearly $137,000, representing an over 18% increase compared to current prices. This target corresponds closely with the 1.618 Fibonacci extension level around $134,700.
Bitcoin’s Correlation with Gold and Potential Price Movement
As Bitcoin’s price nears $117,000, it has rekindled its correlation with gold. If this “Pumptober” rally has legs, $122,000 could be the next short-term test, and $138,000 could be a potential ceiling before another possible correction takes place.
This article does not contain investment advice or recommendations. Every investment and trade movement involves risk, and readers should conduct their own research when making a decision. For more information on Bitcoin’s price movement and analysis, visit https://cointelegraph.com/news/how-high-can-bitcoin-price-go-in-october?utm_source=rss_feed&utm_medium=rss_category_market-analysis&utm_campaign=rss_partner_inbound
