After breaking out to new all-time highs this week, bitcoin has more room to run, analysts say.

The top cryptocurrency has been stuck in a tight range for weeks, struggling to break above its last record around $111,000, but it moved decisively higher this week.

After jumping above $118,000 on Thursday, technical analyst Katie Stockton, founder and managing partner of research firm Fairlead Strategies, believes bitcoin is on track to reach $134,500, about 14% higher than current levels.

Stockton highlighted bitcoin‘s cup-and-handle price movement in the months since last December.

The chart pattern gets its name from its teacup shape. First, the price forms a rounded “cup” as it dips and then recovers. Then, it pulls back slightly to form a smaller “handle,” a short-term consolidation before breaking out to new highs.

It’s “a pattern that often results in immediate upside follow-through,” Stockton wrote on Friday.

Fairlead Strategies

Stockton’s also looking at the Moving Average Convergence Divergence indicator (MACD), which measures trend momentum. Stockton believes it signals that bitcoin is on track for sustained upward price movement in the coming months.

“Support is now defined by former resistance near $108,300,” Stockton wrote.

It’s not just bitcoin that’s jumped this week. Other cryptos are surging as well. Ethereum has rallied over 16% in the past five days, and as DOGE rose 8% in the last day alone.

“Concurrently, strength in US equities, currently trading at or near all-time highs, is showcasing a robust risk-on environment, a supportive backdrop for crypto,” Thomas Perfumo, global economist at crypto Kraken.

Additionally, over $1 billion in short positions were liquidated in the last 24 hours as the price of bitcoin surged and traders were forced to close their positions, Perfumo said.