Bitcoin Nears Breakout at $105,500 with 6% Rally Potential

Bitcoin (BTC) has been making waves in the market, with its price action around the $105,000 level capturing the attention of market technicians. After its historic surge into six figures, BTC has formed a symmetrical triangle pattern, which is nearing completion. This pattern is significant because it suggests a potential breakout, supported by multiple technical factors.

The triangle pattern, visible on the 2-hour chart, shows a series of lower highs meeting ascending lows, creating a compression zone that typically resolves with a powerful directional move. The trendlines are converging at around $105,500, indicating a decision point for traders within the next 24-48 hours. The current technical landscape strongly favors the bulls, with several key indicators flashing green. The Relative Strength Index (RSI) divergence shows higher lows while the price temporarily dipped, indicating waning bearish momentum. The Moving Average Convergence Divergence (MACD) histogram has shifted from negative to positive territory, with the blue line crossing above the signal line, suggesting building momentum. Additionally, the 50-period Exponential Moving Average (EMA) at $105,420 has repeatedly caught price drops, functioning as dynamic support.

What’s particularly telling is the volume profile during this consolidation. Trading volume has steadily decreased as the pattern forms, which is exactly what technical analysts want to see before a breakout. This declining volume confirms the pattern’s validity and suggests accumulation rather than distribution. For traders looking to capitalize on this high-probability setup, the strategy is straightforward. The classic entry point comes on a confirmed breakout above $106,767, with most professionals requiring both price action and volume confirmation. The typical target, measured by projecting the triangle’s height from the breakout point, suggests a move toward $109,000. Smart money places stops just below the most recent swing low at $104,098, tight enough to quickly invalidate the trade if wrong, but with enough room to avoid getting shaken out by normal market noise.

With institutional players launching Bitcoin-linked bonds and raising funds for BTC purchases, the fundamental backdrop supports what the charts are telling us: Bitcoin’s next leg up may be closer than many realize. The convergence of these technical factors and the institutional interest in Bitcoin suggests a potential 6% rally ahead, with the price targeting $109,000 on a breakout above $106,767. This setup is particularly compelling for traders and investors looking to capitalize on the next move in the Bitcoin market.