Key Takeaways:

• Bitcoin traded above its short-term holder cost basis at $114,000, indicating rising demand with potential for further increases.
• Analysts predict Bitcoin’s price could continue to trend upwards towards the $150,000 mark.

Bitcoin (BTC) recently climbed back over the $115,000 threshold on Monday, recovering from the significant losses resulting from Friday’s record sell-off which caused more than $20 billion in liquidations across centralized exchanges.

The drop of 10% to 15% affected Bitcoin’s technical indicators, yet traders remain hopeful about a bullish macro outlook with a target of $150,000 still within reach.

Bitcoin Reclaims Essential Trendline

The BTC/USD pair is reported to be trading 8% higher than the $107,500 low recorded last Friday, as per Cointelegraph Markets Pro.

This rebound has enabled Bitcoin to rise back above its short-term (STH) cost basis, which may lead to potential gains in the near future.

“The show goes on.” - Frank Fetter

Bitcoin Short-Term Holder Cost Basis. Source: Glassnode

The STH cost basis trend line serves as a support during corrections in Bitcoin’s bull markets. Reclaiming this trend boosts investor confidence that further gains could be realized.

Additional insights from Glassnode also signaled that the cost basis for holders who have kept their Bitcoin for one to three months has surpassed that of those holding for one week to one month, indicating an uptick in demand and inflows of capital as traders seize buying opportunities.

Bitcoin Realized Price by Age. Source: Glassnode

Sustained Uptrend for Bitcoin

Bitcoin’s recent brief flash crash below $110,000 was short-lived, as traders affirmed that the upward momentum was still intact.

“The crucial factor is that Bitcoin holds support above the 20-Week MA currently at $113,300,” stated MN Capital’s founder Michael van de Poppe in a post on X.

Van de Poppe mentioned that Friday’s plunge below this price point provided a significant buying opportunity, suggesting that Bitcoin is still on track for an upward trend.

Along similar lines, crypto analyst Mikybull assessed that Bitcoin remains in a bullish state from a price action perspective:

“As long as $BTC and $ETH are still looking great on the HTF charts, the bullish vibe continues.”

Daan Crypto Trades remarked that his “base case for this cycle has always been $120K-$150K.” Analysts are watching closely as Bitcoin nears the light green/yellowish section of the rainbow price chart indicator, believing it could be a prime moment to start exiting positions as prices approach these thresholds.

Bitcoin Rainbow Price Chart Indicator. Source: Daan Crypto Trades

Crypto analyst Jelle noted that Bitcoin had undergone a “2017-style washout” but crucial levels were maintained, staying firm on the target of $150,000.

As reported by Cointelegraph, Bitcoin is currently testing the “golden cross,” a bullish technical formation traditionally followed by significant price surges of 2200% in 2017 and 1190% in 2020. A confirmed breakout may lead to a parabolic price escalation in the upcoming weeks.

This article does not provide investment advice. All investments involve risk, and it’s recommended to perform your own due diligence before making any financial decisions.