The price of Bitcoin (BTC) rose to a seven-week peak of $119,400 on October 2, as a wider crypto market revival added approximately $165 billion to the sector’s total value in a single day.

This upward movement, which saw BTC break through key resistance levels, aligns with a technical analysis framework suggesting that $130,000 is a realistic short-term target if current dynamics persist.

Analyst Eyes Technical Setup as October Rally Strengthens

After consolidating below $110,000 in late September, Bitcoin began a notable ascent, first reclaiming $112,500 and then pushing past a critical resistance near $116,500 on October 1. The price surge during early Asian trading on October 2 brought BTC to its highest level since mid-August, resulting in about $475 million in liquidated short positions, indicating a significant shift in market sentiment.

Market watcher Axel Adler Jr. reports that Bitcoin’s current trajectory places it well within the “STH-MVRV pricing corridor,” tracking the average profitability of short-term holders. In previous instances, the upper boundary of this range, currently around $130,000, has acted as a profit-taking zone for traders.

“Bitcoin is currently in a state of equilibrium within the established volatility corridor,” the analyst emphasized. “Short-term drops below the baseline are swiftly bought up, and the market structure remains healthy. If current dynamics hold, a move toward $130K seems plausible.”

Market Context and Historical Tailwinds

The BTC surge unfolds alongside a renewed risk appetite in financial markets, following mixed U.S. labor reports that have investors contemplating another interest rate cut.

The recent uptick in Bitcoin’s value was 3.7% within the last 24 hours, fluctuating between $114,442 and $119,400, with a 6.2% increase over the past week, although it is slightly trailing the broader crypto market which saw a nearly 9% rise in the same timeframe.

Moreover, BTC has increased by 7.7% in the month’s span, maintaining proximity to its all-time high of over $124,000 achieved two months prior.

Historically, the final quarter has been favorable for Bitcoin, especially October, which has yielded positive results for the asset in 10 out of the last 12 years. The community anticipates whether this trend continues, potentially propelling BTC towards the target set by Adler.