Bitcoin’s Next Big Move: A Short-Term Crash Before Soaring to $120,000?

Bitcoin's rollercoaster ride isn't over yet—analysts warn of one last gut-wrenching dip before the king of crypto blasts off to new highs.

Here's why traders are bracing for impact—and how this could be the final shakeout before a historic rally.

The $120,000 target isn't just hopium—it's the next stop if Bitcoin plays by its usual volatile script. Buckle up.

(And remember: Wall Street will still call it a 'bubble' at $500K.)

The Two FVGs Holding The Bitcoin Price Down

In the analysis, Thomas explains that bitcoin has created fair value gaps both above and below the current support level. The first of these lies above $117,000 and is expected to be the first to be filled. This position holds a lot of liquidity, and it is likely that this upper imbalance will be targeted first. Such a move would trigger stop losses and trap late longs who are tricked into buying the breakout.

However, this Bitcoin breakout is not expected to last for long since only one FVG will have been filled at this level. The next FVG is way below the recent lows recorded at the start of August, sitting just above $111,000. The crypto analyst expects that a retracement from the breakout will push it back down to this level. This decline is, in itself, bullish as it will fill the imbalance at a point where there is a lot of demand.

Just like the sweep upward above $117,000, the retracement to $111,000 is expected to clear internal liquidity. This will provide a clean slate from the compressing structure that the Bitcoin price has been trading within and could be the start of the next major move upward.

What’s Next After Internal Liquidity Is Cleared?

Once this move is in motion, the analyst points to the descending trendline as the next important formation on the bitcoin price chart. For the price to continue upward, Thomas explains that Bitcoin would have to react from the upper imbalance of the trendline before falling back lower. This is the level that would determine confirmation for the next move.

With internal liquidity also completely cleared at the end of the trend, Bitcoin is expected to have a “clean position to rally.” Targets WOULD be the liquidity build-up at the previous wicks and area of rejection, which pushes all the way up toward $120,000. “This would complete the full cycle of imbalance fill, liquidity grab, and directional expansion,” Thomas said. However, he also added that “Price is unlikely to sustain a move higher until both zones have been addressed.”