Bitcoin price expected to accelerate if daily close above $113K is secured

Key point:

• Bitcoin’s momentum continues to accelerate above $113,000, leading traders to predict a rally to $150,000.

Bitcoin (BTC) made a new all-time high above $113,788 on Thursday, and several analysts expect the uptrend to continue. 10x Research head Markus Thielen told Cointelegraph that BTC has a 60% probability of rising more than 20% in the next two months.

Milk Road co-founder Kyle Reidhead was even more optimistic, projecting a target of $150,000 for BTC in his post on X.

Could BTC continue higher, or will breaking out to a new all-time high prove to be a bull trap? Let’s analyze the charts to find out.

BTC price prediction

Bitcoin broke above the $110,530 resistance on Wednesday and hit a new all-time high at $113,788 on Thursday. However, the bears are expected to pose a solid challenge near the neckline of the inverse head-and-shoulders pattern at $113,800.

Buyers will have to drive the price above the neckline to complete the bullish setup. That will clear the path for a possible rally to the pattern target of $150,000.

Sellers are likely to have other plans. They will try to pull the price back below $110,530. If they succeed, the BTC/USDT pair may slide to the moving averages. 

Buyers are expected to defend the moving averages with all their might because a break below the 50-day simple moving average ($106,774) may accelerate selling. That will also form a negative divergence on the relative strength index (RSI), signaling a deeper correction to $100,000.

Related: Bitcoin treasury companies acquire record 159,107 BTC in Q2

The bulls are trying to maintain the price above the breakout level of $110,530. If they manage to do that, the pair could challenge the overhead resistance at $112,000. This is a crucial near-term resistance to watch out for because a break above $112,000 could propel the pair to $116,571.

The first sign of weakness will be a break below $110,530. That signals profit-booking by short-term buyers. The bears will then try to strengthen their position by pulling the price below the 50-SMA. If they can pull it off, the pair may slump to $107,000 and then to $105,000.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.