Bitcoin Shakeout Pattern Signals Major Rally Ahead - $130,000 Target in Sight
Bitcoin's recent consolidation phase isn't a warning sign—it's a launchpad. Market patterns suggest the cryptocurrency is priming for a massive upward move that could shatter previous records.
The Shakeout Setup
Traditional chart analysis reveals a classic accumulation pattern playing out. Instead of panicking about sideways movement, smart money recognizes this as institutional positioning before the next leg up. The $130,000 threshold isn't just speculative—it's mathematically projected from current formations.
Market Mechanics at Play
Liquidity flows indicate whales are accumulating rather than distributing. Retail fear creates perfect entry points for major players who understand crypto's cyclical nature. Meanwhile, traditional finance veterans still can't decide whether to dismiss Bitcoin or try regulating what they don't understand.
The Path Forward
Technical indicators align with fundamental adoption trends. Each dip gets bought aggressively, creating higher lows while impatient traders get shaken out. The pattern repeats—weak hands sell to strong hands, then watch from the sidelines as prices explode.
Remember: Wall Street always fights the revolution until they can package it into fees. Bitcoin doesn't care—it just keeps cutting out middlemen and heading higher.
The Anatomy Of Bitcoin’s Shakeout Pattern
Bitcoin’s price action in the past 24 hours has been highlighted by intense volatility, opening the day just above $113,000 before dipping to $110,800 and quickly rebounding to now trading back above $112,000 at the time of writing. However, expanding the short-term price action into a longer one shows that bitcoin is trying to break above a consolidation zone with a green weekly candle following a green close last week.
Notably, technical analysis of the weekly candlestick timeframe chart from crypto analyst CrypFlow shows that this price action is part of a shakeout pattern that’s characteristic of Bitcoin. According to the analyst, Bitcoin never trends higher in a straight line. Instead, each expansion phase in its market cycle is preceded by two steps of a consolidation and a shakeout.
Shakeouts were nothing more than quick downside wicks earlier in this cycle. More recently, however, the corrections have become deeper and longer with full-bodied weekly candlesticks that drove out many investors before the next expansion phase began.
The chart below, which was shared by the analyst, shows this repeating pattern of shakeouts in purple circles and expansions in green boxes since the cycle bottom in 2022, with the latest dip in the last week of August slotting neatly into the same framework of a purple shakeout.
Why Bitcoin Is Headed Above $130,000
As shown in the chart above, the most recent break below the consolidation box is somewhat shorter than the previous two. Now, Bitcoin is climbing back into its range, and if it follows its previous movements since 2022, it could now be at the cusp of a new uptrend.
At the time of writing, the stochastic RSI on the weekly chart has dipped to oversold levels and is on the verge of a bullish cross. If confirmed, this indicator could provide the momentum for Bitcoin’s next continuation of the step-like progression.
In terms of a price prediction, the expansion phase highlighted in the analysis projects that Bitcoin may not only retest its current all-time high but also push into new price levels above $130,000. With Bitcoin currently trading around $112,200, reaching $130,000 WOULD translate to a gain of roughly 15.8%.
A surge to $130,000 would most likely lift Bitcoin’s support base closer to its current all-time high around $124,000 before the next consolidation and shakeout.
