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Evidence is mounting that Bitcoin may be preparing for another major rally, as technical chart patterns, on-chain whale activity, and a surge in institutional buying all begin to point in the same direction.
As of this press time, Bitcoin trades at $108,853, up 0.5% over the last 24 hours. Analysts are now eyeing the $120,000 level as a potential near-term target, citing a layered case for a sustained upward move if key support levels hold.
The Charts: Two patterns to prove a BTC breakout to $120k
The bullish case starts with the technicals. Analyst Lark Davis through a tweet yesterday sharing a chart showing Bitcoin breaking above a descending trendline, signaling the end of a consolidation phase. This setup of a symmetrical triangle breakout pattern often formed before strong price surges.
Related: Whales Are Buying Again: 3 Coins They’re Stacking for 2025
Davis noted a potential upside of nearly 10%, targeting the $120,000 level. The pattern’s breakout was confirmed by a spike in trading volume and a green MACD histogram. The MACD line also crossed above the signal line, another sign of upward momentum.
Adding to the sentiment, three exponential moving averages —the 20-day, 50-day, and 200-day —are currently below the breakout point. This reinforces the bullish structure. While Davis did not specify a timeframe, he suggested the rally could begin within days.
Elliott Wave Suggests Third Wave Rally Toward $116K
A separate analysis by Garrett Patten uses Elliott Wave theory to predict a similar bullish outcome. Patten identified a nested wave structure, with smaller-degree waves i-ii forming within a larger 1-2 wave setup. This formation typically precedes a strong third-wave rally.
According to Patten, Bitcoin must hold the $107,100 to $108,300 support range to maintain the wave structure. If support holds, his chart projects a move to $116,400, supported by Fibonacci extensions and upward-trending MACD and RSI indicators.
The third wave in Elliott Wave sequences is often the strongest, suggesting Bitcoin could experience rapid gains if current levels are sustained.
The Whales: On-chain data shows major accumulation
Meanwhile, on-chain data from Glassnode shows a 3% weekly increase in wallets holding over 1,000 BTC. This marks the most significant spike in institutional accumulation since early 2024.
The growth in large wallet addresses suggests that deep-pocketed investors remain confident in Bitcoin’s long-term value.
The Money: Institutions pour $600 million into Bitcoin ETFs
Additionally, BlackRock and Fidelity recently purchased $461.6 million worth of Bitcoin on Thursday. This led to an overall positive inflow of over $600 million in the U.S. Bitcoin ETF market. This influx of capital underscores renewed institutional demand as BTC briefly broke $110k yesterday.
Related: Bitcoin’s Bullish Blueprint: Two Analysts, One $120K Target
The Long Game: Political catalyst for BTC $120k
Executive Director for Trump, Bo Hines, recently suggested that total crypto market capitalization could soar to $15–$20 trillion once stablecoin legislation is enacted. Given the current market cap of $2.164 trillion, Bitcoin alone would need to increase by nearly 593% to meet that scenario.
Such projections reflect growing institutional and political support for digital assets. If current momentum continues and legal frameworks become more favorable, Bitcoin could be poised to set a new all-time high, potentially eclipsing the $111,970 peak recorded on May 22.
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