After going on an impressive run to close the week, the Bitcoin price has become relatively steady over this weekend. The premier cryptocurrency has shown some signs of indecision and continued to move sideways within the $117,000 and $118,000 range.
According to a prominent online pundit, the Bitcoin price might be at a critical juncture that could decide its future over the next few weeks. Insights from a technical analysis model suggest that the price of BTC might run up to an unprecedented high of $143,000 once it overcomes the next resistance level.
BTC Needs To Break This Resistance Level To Continue Rally
In a July 12 post on social media platform X, Alphractal founder & CEO Joao Wedson revealed that the Bitcoin price faces significant resistance between $118,900 and $120,000. This price evaluation is based on the Bitcoin Power Law model, which provides a mathematical description of BTC’s historical price trends.
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The Bitcoin Power Law model estimates the network effect and adoption curve without speculation. Using this framework, the pricing model provides long-term support and resistance levels or “bands” on the Bitcoin price chart.
Wedson revealed that the Power Law model indicates that the Bitcoin price faces significant resistance between the $118,900 and $120,000 region. According to the on-chain analyst, the market needs to breach the Alpha Price — which lies somewhere around $119,300.
For context, the Alpha Price refers to a major inflection point in the Power Law model and a level that the Bitcoin price needs to break and stay above to enter the next significant phase of the bull cycle. In essence, the BTC price must witness a sustained break above $119,300 to continue its rally.
Wedson mentioned that the price of BTC will need to show resilience in order to breach the psychological $120,000 level. However, it might need to consolidate first and perhaps take some long traders out of the market before overcoming the $120,000 level, the on-chain analyst noted.
According to Wedson, a sustained breach of the $120,000 level will signal the beginning of an even much bigger rally for the market leader. The on-chain analyst put the target for this rally at between $143,000 and $146,000, marking the Bitcoin price top in this cycle.
Bitcoin Price At A Glance
As of this writing, the price of BTC stands at around $117,530, reflecting no significant movement in the past 24 hours. Nevertheless, the flagship cryptocurrency is up by nearly 9% on the weekly timeframe.
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Featured image from iStock, chart from TradingView
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