Bitcoins Growth Potential Indicated at $130,000 Amid Market Consolidation

Despite the consolidation of the leading cryptocurrency, its On-Balance Volume (OBV) indicator suggests a potential rise to $130,000-$135,000 in the third quarter. This observation was made by analyst Kas Abbe.

An increase in the OBV reflects buying pressure, while a decrease indicates a dominance of sellers. If the indicator continues to rise, Bitcoin may break out of the trading range of $103,000-$111,000, where it has remained since May, the expert noted.

Historical price movements reveal that Bitcoin tends to experience sharp breakouts when an increase in OBV confirms underlying buying momentum during periods of stagnation.

From March to April, the digital gold traded sideways between $76,000 and $84,000, at which point OBV started establishing higher lows. This was followed by a rally of nearly 60%, pushing the asset’s price above $110,000 by May.

Meanwhile, a user named Bobby A pointed out the formation of a «bull flag» pattern on Bitcoin’s weekly chart.

This pattern suggests a potential rapid increase followed by further consolidation.

In the short-term outlook, analyst and MN Trading founder Michael van de Poppe suggested a possible test of $106,000 and subsequent growth, noting the market’s reaction to the June meeting of the Federal Reserve and its return to «normal trading conditions.»

It’s worth mentioning that Binance founder Changpeng Zhao believes that the price of digital gold could reach $500,000 or even $1 million within the current cycle.

Recently, Standard Chartered urged investors to buy the leading cryptocurrency, predicting its price could rise to $120,000 in the fourth quarter.