Bitcoin saw a positive surge on Monday, rising 2.5% to a high of $65,579, reached during the early Asian trading hours on Monday, May 6. The BTC price is currently trading at $64,850 as of 6:30 am EST. Its daily trading volume is up 3% to $20.7 billion, suggesting increased investor interest in the pioneer cryptocurrency over the last day.

The big Crypto has a market capitalization of $1.276 billion, placing it at position 1 on the CoinMarketCap ranking.

Zooming out to the long-term view, Bitcoin has experienced challenges, dropping 4% over the last 30 days. It, however, remains bullish on the longer timeframes, climbing 53% over the last quarter and 126% over the last 12 months.

What do this short-term positivity and long-term bullishness tell us about the next step the BTC price is likely to take?

Bitcoin Bulls Could Exploit the Rounded Bottom Pattern to $120,000

In mid-November 2021, the Bitcoin price embarked on a steady downtrend that saw the token lose over 78% of its value. This downturn was, however, halted at the $15,500 support wall. This gave the bulls time to regroup and buy more before embarking on a recovery. The recovery since then has been steady, with BTC rising by 316% to the current price.

This price action has formed a rounded bottom chart pattern on the weekly chart, as shown below. This technical formation is considered bullish in technical price analysis due to the potential signals it provides regarding a trend reversal from a downtrend to an uptrend. This pattern is identified by a gradual and rounded curvature at the bottom of a price chart, resembling the shape of a saucer or a U.

To confirm the chart pattern, the price of the largest cryptocurrency by market capitalization has to move from the current price to produce a weekly candlestick close above the $68,971 supplier congestion level. This would see Bitcoin rise to confront resistance from the all-time high at $73,835 before reaching the psychological level at $80,000.

In the long term, BTC could break above this resistance level. This breakout could signal that buyers have gained the upper hand, and an uptrend is likely to follow.

This would set Bitcoin’s price on a clear path to reach the technical target of the governing chart pattern, which is set by measuring the pattern's height from the lowest point of the rounded bottom to its highest point and projecting that distance upward from the breakout point. This projection can provide a target price for the potential uptrend.

In this case, the technical target is set at 77% above the neckline to $122,671, representing an 88% climb from the current levels.

The up-facing moving averages supported this positive outlook for BTC. Note that the MAs had sent a call to buy Avalanche on the weekly chart. This happened during early November when the fast-moving 50-weekly exponential moving average (EMA) crossed above both the 100-weekly EMA and 200-weekly EMA to produce a bullish cross. This bullish cross is still in play, suggesting that the market conditions still favor the upside.

In addition, the relative strength index (RSI) also moved upward. Its position at 68 suggested that the bulls were in control of the price. Bitcoin’s upward trajectory will gain traction once the RSI crosses the 70 line into the overbought region.

On the downside, a drop below $60,000, a level currently embraced by the pattern’s support line, would invalidate the bullish thesis as BTC drops to record lower lows. The first line of defense would emerge from the $50,000 demand zone and then toward the 50-weekly EMA at $46,319. Losing this foothold would spell doom for the king crypto, bringing losses to the $30,000 psychological level into the picture.