Bitcoin (BTC) is showing signs of recovery following the significant selloff earlier this week. The price has found support after dropping as low as $76,624, setting the stage for a potential surge toward $200,000, based on historical price trends.
At the time of writing, Bitcoin is trading at $83,927, reflecting a 1.38% increase over the past 24 hours. This marks a recovery from a low of $82,017 to a high of $84,725, signaling a potential breakout.
Market analyst Rekt Capital drew attention to a historical pattern from June 2021, when Bitcoin consolidated between the 21-week and 50-week Exponential Moving Averages (EMA) after a major crash. Following this consolidation, Bitcoin experienced a 123.95% surge, moving from around $37,500 to its current price. If this pattern repeats, Bitcoin could reach a target range of $187,000 to $200,000.
On-chain data from Glassnode highlights sustained buying pressure, with a significant number of large transactions and a 24% increase in BTC trading volume on crypto exchanges, indicating continued positive sentiment. Additionally, whale activity has surged, signaling a shift in market behavior that could help drive prices higher.
Despite some outflows from Bitcoin ETFs, institutional and government adoption of Bitcoin continues to grow, further fueling optimism for the coin’s future. With these factors aligning, Bitcoin appears poised for a potential breakout, with the $200,000 target becoming more attainable.
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