Home / Business and Economy / Bitcoin Breaks Out of Descending Channel, Targets $130K
Bitcoin Breaks Out of Descending Channel, Targets $130K
2 Oct
Summary
- Bitcoin price surges out of descending channel, hits $119,500
- Short-term indicators signal overbought, potential for pullback
- Bullish breakout could lead to rally to new all-time highs
According to the latest crypto market analysis, Bitcoin (BTC) has broken out of a descending channel, a bullish formation that suggests the price could continue its upward trajectory. On October 3rd, 2025, the BTC price hit $119,500, a significant milestone, before pulling back slightly.
The breakout from the descending channel is a positive sign, as it indicates the potential for a sustained rally. Analysts believe a measured move from the breakout could take the price to around $130,000. However, they also note that when a breakout occurs from such a pattern, the price often returns to the breakout zone to test and confirm the support before rising again.
The shorter-term technical indicators, such as the Stochastic RSI, are currently signaling an overbought condition, which could lead to a period of consolidation in the near term. The Relative Strength Index (RSI) is also just inside the overbought territory, further suggesting the need for a pullback to allow these indicators to reset.
Despite the potential for a short-term correction, the overall outlook for Bitcoin remains bullish. The weekly chart has become more bullish, with the price surging more than $10,000 after retesting the $109,000 support level. The MACD and Stochastic RSI on the weekly timeframe are also starting to show signs of a bullish shift, indicating the potential for the next leg higher.
Investors are advised to be cautious of any corrective impulses that may occur over the next day or two, as this is not the time to get shaken out of their positions. The long-term trend for Bitcoin appears to be firmly in the bulls' favor, and a rally to new all-time highs could be on the horizon.
