Key Insights
- Bitcoin price was about to repeat the exact same pattern that sent Gold on a parabolic run.
- BTC had a perfect bounce setup from multi-month trendline support as demand stayed steady.
- Heavy liquidations just swept through large positions on BTC and ETH futures.
Bitcoin (BTC) price reclaimed the $114,000 mark at press time, which marked about a 1.45% rise from the previous day’s candle close. Its average of $50 billion in daily trading volume suggested a reignited interest among crypto market participants.
The last few days have been tough for Bitcoin price following the correction. Its trend could not be termed as healthy due to its lack of a defined bullish structure. However, reclaiming the $114K level could support the completion of a Gold-like rally.
How Could Bitcoin Price Ape Gold Rally?
From a numerical perspective, the BTC price seemed to follow a similar pattern to that of gold. Gold formed an inverted heads and shoulders between 2021 and the start of 2024 before it broke out.
Bitcoin price formed a similar pattern at the beginning of 2025 and in July. At press time, the price was retesting a breakout that was anticipated to repeat the Gold-like rally.
Gold surged from $1965 to $3,500 per ounce. As per Coinvo’s post on X (formerly Twitter), the projection showed that BTC could hit $280,000 and beyond.
This bounce from $112K, where the price was at risk of further downfall, could signal positive market sentiment.
Isolating BTC price on a daily timeframe, the chart confirmed the cryptocurrency’s bounce setup. BTC traded at an ascending multi-month support, which, if broken, could revert it to bearishness.
In the case of a bear structure, Bitcoin’s price could revisit $100K, $95K, and $85K in the worst-case scenario. The point of control was at $105K. This raised a rhetoric from Coinvo, who wrote, “Will we see Bitcoin at below $105,000 again soon?”
Conviction to hold above the support would make $130K achievable.
Bitcoin Demand is Still There!
Given the potential replication, Bitcoin’s demand did not seem to fade. More than 320K BTC have been accumulated in the last one month.
The accumulation kept rising, even after the price started to decline. The addresses responsible for this acquisition were also in a rally after staying flat since February this year.
Despite the demand staying steady, addresses that traded for the short term were starting to panic. This was a result of unrealized losses in the positions held.
For institutions and influential individuals, hodling was their norm. Whales were moving their dormant tokens to consolidate their UTXOs. Trump Media held about $2 Billion in BTC, asserting the President’s stance on cryptocurrencies.
Apart from demand and a bullish price structure, historical events were also aligning.
Heavy Liquidations Sweep BTC and ETH Futures
As per CoinGlass data, the liquidity was shrinking while volatility was expanding, a perfect scenario for a rally in currencies. The reduced liquidity resulted from the $53M liquidations in 24 hours, which shook out most of the over-leveraged positions.
Data showed that the cleared shorts in the same period amounted to $9.3 Million. The less these orders were liquidated during this accumulation period, the more explosive the move would be.
After clearing the levels below $115K, Bitcoin price was determined with the clusters of orders resting above the $120,000 mark. Per Daan Crypto Trades, new highs would be made if this could be achieved.
On his defense, Daan wrote, “Pretty much nothing right above until that $120K level where a ton of liquidity sits. Safe to assume that if price gets there, it will have the fuel to accelerate to new highs.”
However, he noted that Bitcoin price was in a short-term correction where reclaiming $115K could reignite a rally. Meanwhile, $110K acted as a barrier to complete a bear flip that would take BTC to $100K.
The post Bitcoin Price Follows Gold Pattern That Sparked Parabolic Rally appeared first on The Market Periodical.
