Bitcoin News Today: Bitcoin's Bullish Megaphone Roars Toward $260K as Market Bottom Signs Emerge

Bitcoin’s recent price movements have sparked renewed interest among traders and analysts, particularly regarding the potential for a relief rally amid signs of oversold conditions. Technical formations, whale activity, and institutional demand continue to shape market sentiment, with analysts pointing to key levels that could determine the next phase of Bitcoin’s trajectory.

The cryptocurrency has been forming bullish megaphone patterns on multiple timeframes, which could signal a continuation of its upward trend. On the daily chart, Bitcoin has recently rebounded from support at around $108,000, a level analysts have highlighted as potentially significant. Analysts note that a breakout above the upper trendline of the megaphone pattern, currently around $124,900, could confirm the pattern and set the stage for a parabolic move. If this breakout materializes, the measured target could be as high as $144,200, representing a 27% increase from current levels [1].

A larger megaphone pattern spanning the past 280 days has also drawn attention. Bitcoin is currently trading near the upper boundary of this formation, around $125,000. A breakout here would likely push the price toward $206,800, according to some analysts. Meanwhile, on the weekly chart, a broader pattern suggests a potential target of $260,000, a level described by some as "inevitable" for the next leg of the rally [1].

Short-term holders (STHs) of Bitcoin are showing signs of distress, with the STH MVRV ratio falling to the lower boundary of its Bollinger Bands. This condition is typically associated with oversold territory and has been observed in prior market bottoms, such as the $74,000 level in April. Analysts have drawn comparisons between the current situation and that period, suggesting a potential relief rally may be on the horizon as STHs offload positions at a loss [1].

Technical indicators also point to a potential shift in momentum. Bitcoin’s RSI has cooled to 40, nearing oversold levels, while the Stochastic RSI stands at 27, indicating that downward momentum may be slowing. This divergence between price and momentum metrics has historically been a precursor to trend reversals [2]. Analysts warn, however, that a failure to hold key levels such as $114,000 could result in a prolonged correction [3].

Institutional activity remains a key factor in Bitcoin’s price action. Bitcoin ETFs continue to attract capital, with recent inflows pushing cumulative totals above $54 billion. These flows, combined with the anticipated 2025 halving event, are seen as potential catalysts for sustained price increases [2]. Whale movements also play a role, with large transfers to market makers temporarily pushing prices lower but often followed by rebounds, a classic “dip-and-rally” pattern [2].

Looking ahead, the immediate focus for traders is on Bitcoin’s ability to hold key support levels, particularly $109,000 and $114,000. A successful defense of these levels could reinforce bullish sentiment and set the stage for a more significant upward move. If the price fails to find a bottom, analysts warn of a potential slide toward $105,000, which would test the resilience of current buyers [2]. Market watchers are closely monitoring technical indicators, whale activity, and institutional inflows for further clues about Bitcoin’s trajectory in the coming weeks.

Source:

[1] Bitcoin megaphone pattern targets $260K as BTC price ... (https://cointelegraph.com/news/bitcoin-megaphone-pattern-targets-260k-abtc-price-screams-oversold)

[2] Bitcoin (BTC) Price Prediction: Bitcoin Dips Below $110K ... (https://bravenewcoin.com/insights/bitcoin-btc-price-prediction-bitcoin-dips-below-110k-as-traders-watch-105k-support-for-possible-rebound)

[3] Analyst Identifies Condition for Bitcoin's Rally Continuation (https://forklog.com/en/analyst-identifies-condition-for-bitcoins-rally-continuation/)