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 , equivalent to , by an old wallet that had been dormant until July 2025. Analysts say similar waves of whale profit-taking were observed after the and the .
