Bitcoin Price Forecast: Breakout From Multi-Week Range Could Send BTC to $114k Soon

Highlights:

• Bitcoin is pushing higher after breaking out of the $90,348 – 86,799 range
• Short-term target at $114,916 if rally continues
• Rising institutional demand is likely to help drive momentum 

Bitcoin continues trading in a stable range for another day, after showing some strong price action late last year. At the time of going to press, Bitcoin was trading at $92,739.20, down by a negligible 0.9% in the day. However, in the same period, Bitcoin intraday trading volumes have shot up. They are up by 21.23% to stand at $55.56 billion. This rise in Bitcoin trading volumes when the price is barely moving points to a tug-of-war between long-term investors and short-term traders. 

On one hand, long-term investors continue to accumulate Bitcoin as evidenced by its price action since last year. However, short-term leveraged traders are taking advantage of the range-bound trading to play both sides of the trade.

A major move either up or down could come if there is a major liquidation event for short-term traders. If there is a short squeeze, Bitcoin could break out to new highs. Similarly, if short sellers prevail in the short term, Bitcoin could enter a new corrective phase. Overall, the case is stronger for a Bitcoin rally higher. 

Better Regulations Driving Bitcoin Demand

One of the factors that could push the Bitcoin price higher is the fact that regulations are getting better. Last year, multiple countries put in place regulations that brought clarity to the cryptocurrency market. In the US, several of these laws were passed that have helped drive institutional confidence in Bitcoin. Clarity is also coming in when it comes to consumer protection when it comes to Bitcoin purchasing.

This is most evident in the case of Bitcoin Depot, a cryptocurrency ATM vendor that agreed to settle $2 million to fraud victims. Such moves are likely to inspire more confidence in Bitcoin among both retail and institutional investors going into the future. By extension, this makes the case for more Bitcoin upside stronger going into the future.

Growing Market Liquidity Adding to Bitcoin Momentum

Bitcoin is also set to benefit from the recent moves by the US Federal Reserve. In Q4 of 2025, the US Federal Reserve made moves that are likely to push Bitcoin higher for the better part of 2025. One of them was the move to cut rates in December, contrary to what many investors had expected.

At the same time, the Fed announced the official end of QT and has since been pumping billions of dollars into the markets. The implication may not be clear in the very short term, but this rising liquidity could push Bitcoin to new highs in the foreseeable future. Already, the impact of this move is evident in the fact that Bitcoin is holding steady despite ongoing geopolitical headwinds.

Recently, the US military attacked Venezuela and arrested the country’s president. In the past, such moves triggered a sharp rise in the price of Gold and a correction for Bitcoin. However, this time it’s different, and Bitcoin went up alongside Gold. This points to the rising underlying demand for Bitcoin. As more countries cut rates and come up with better cryptocurrency regulations, Bitcoin could be headed higher.

Technical Analysis – Bitcoin Price Breaks Out of Multi-Week Range

Last week, Bitcoin narrowly broke out of a 4-week consolidation between $90,348 resistance and $86,799 support. This week, Bitcoin bulls are sustaining momentum above the $90,348 resistance, an indicator that demand is getting stronger.

If Bitcoin bulls remain in control, a rally to $114,916 could follow. On the other hand, if the bulls lose momentum, two scenarios could follow. The first is a possible consolidation above $90,348, now support. The second is a correction that could see Bitcoin retest the $86,799 support level.