Bitcoin’s recent correction may be setting the stage for a major rally, as analysts point to technical patterns and onchain metrics that suggest a renewed upward trajectory could be imminent.
After retreating nearly 7.5% from its all-time high near $123,250, Bitcoin is now trading around $114,405. While some investors fear a deeper decline, several market watchers believe the current dip could represent a healthy consolidation before a breakout to levels above $140,000.
Technical Support Signals Reversal Potential
A key factor drawing bullish attention is Bitcoin’s interaction with its 50-day exponential moving average (EMA). On Sunday, the cryptocurrency reclaimed this support line after briefly dipping below it. Historically, this moving average has acted as a springboard for strong price recoveries.
In fact, a similar setup occurred in June, when a brief dip below the 50-day EMA was followed by a sharp 25% rally. Analysts like BitBull suggest the current pattern mirrors that move, with the $110,000–$112,000 range now viewed as a potential “perfect bottom” area.
Classic Chart Patterns Point to $148K Target
The bullish narrative is reinforced by Bitcoin’s formation of an inverted head-and-shoulders (IH&S) pattern—a widely recognized technical setup that often signals a reversal in downtrends.
According to trader Merlijn, BTC recently completed a successful retest of the IH&S neckline, a move typically followed by a breakout continuation. Based on the measured move projection from this pattern, Bitcoin could be headed toward $148,000, aligning closely with the broader market’s $150,000 price target for late 2025.
Whale Selloff May Mark End of Profit-Taking Phase
Adding to the optimism is recent onchain data from CryptoQuant, which shows that large Bitcoin holders—often referred to as whales—have completed the third major profit-taking wave of the current bull cycle.
The most recent selloff involved the liquidation of 80,000 BTC, equivalent to $9.6 billion, by an old wallet that had been dormant until July 2025. Analysts say similar waves of whale profit-taking were observed after the launch of U.S. spot ETFs in March 2024 and the post-election surge past $100,000 in late 2024.
Each of these events was followed by temporary cooling periods—lasting two to four months—before Bitcoin resumed its upward climb.
“Historical data shows that these phases typically precede renewed accumulation and a fresh breakout to new highs,” said CryptoQuant in its latest market report.
Looking Ahead: All Eyes on October
With BTC holding a strong technical base and whale selling seemingly complete, analysts are watching the coming weeks closely. Many forecast a potential rally to begin in October 2025, possibly pushing Bitcoin past the $148K–$150K mark.
For now, the charts are aligning with history, and investors are hoping that the current correction is not a signal of weakness, but rather the calm before another powerful leg up.
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