-
Bitcoin has initiated a significant supercycle rally, breaking past key resistance levels and setting sights on a $135,000 target amid strong bullish momentum.
-
Technical indicators such as MVRV, RSI, and MACD collectively signal that Bitcoin’s upward trajectory is in its early stages, with substantial growth potential remaining.
-
COINOTAG highlights that recent U.S. debt ceiling adjustments and expanding global liquidity are enhancing Bitcoin’s appeal as a safe-haven asset, supporting its advance beyond $140,000.
Bitcoin’s breakout confirms a supercycle rally, driven by strong technical signals and macroeconomic factors, targeting $135K and beyond amid short seller liquidations.
Bitcoin’s Confirmed Breakout Sparks Supercycle Rally and Short Squeeze Potential
Following a decisive breakout above its previous all-time high near $104,400, Bitcoin has entered a robust bullish phase that signals the onset of a supercycle rally. This breakout effectively ended the recent downtrend, with the price holding firm during retests, demonstrating strong market support. Analyst Mr. Wall Street emphasizes that Bitcoin’s current trajectory targets a range between $135,000 and $140,000, a zone characterized by a significant liquidity pool where over $45 billion in short positions are vulnerable to liquidation. This dynamic is expected to intensify buying pressure as market participants rush to cover shorts, further propelling Bitcoin’s price upward.
Technical Indicators Validate Early-Stage Bullish Momentum
Multiple technical metrics reinforce the bullish outlook. The Market Value to Realized Value (MVRV) ratio remains below levels typically seen at cycle peaks, indicating that Bitcoin is not yet overvalued relative to historical norms. Simultaneously, the Relative Strength Index (RSI) across daily, weekly, and monthly charts stays below overbought thresholds, suggesting ample room for price appreciation without immediate risk of a correction. The Moving Average Convergence Divergence (MACD) also displays bullish crossovers on multiple timeframes, confirming sustained upward momentum. These indicators collectively suggest that Bitcoin’s supercycle rally is in its infancy, with significant upside potential still ahead.
Macroeconomic Factors Bolster Bitcoin’s Safe-Haven Status
Beyond technical momentum, macroeconomic developments are playing a pivotal role in Bitcoin’s surge. The recent increase in the U.S. federal debt ceiling, enacted under former President Donald Trump’s administration, signals ongoing expansion of national debt and monetary supply. Historically, fixed-supply assets like Bitcoin have benefited from such environments, as rising M2 money supply often leads investors to seek alternatives that preserve value. This macro backdrop enhances Bitcoin’s attractiveness as a hedge against inflation and currency debasement, further fueling demand and supporting its price rally toward and beyond the $140,000 mark.
Future Price Targets and Market Dynamics
Looking ahead, Bitcoin may experience a brief retest around the $112,000 level, though it could also bypass this consolidation phase and continue its ascent uninterrupted. The immediate target remains the $135,000 resistance zone, followed by a more ambitious range between $160,000 and $170,000. Achieving these levels would trigger additional short squeeze events, potentially liquidating upwards of $70 billion in short positions. Market makers are acutely aware of these liquidity pools and are likely to drive price action toward these targets swiftly. The exhaustion of sellers at current resistance levels further strengthens the bullish case, indicating that the path of least resistance is upward.
Conclusion
Bitcoin’s confirmed breakout and entry into a supercycle rally are underpinned by strong technical indicators and favorable macroeconomic conditions. The convergence of these factors points to substantial upside potential, with key liquidity zones poised to accelerate price gains through short seller liquidations. Investors should monitor these developments closely, as Bitcoin’s trajectory suggests a sustained bullish phase with targets well above previous all-time highs. Maintaining a disciplined approach and staying informed on market signals will be essential for capitalizing on this evolving opportunity.
