Bitcoin News Today: Bitcoin nears $117K as Trump's 401(k) plan and coiled spring setup signal potential 40% surge to $130K in 90 days

Bitcoin is poised for a potential explosive breakout to $118,000 amid a coiled spring formation identified by ChatGPT’s BTC analysis, coinciding with President Donald Trump’s reported plans to allow crypto investments in 401(k) retirement plans [1]. The technical indicators suggest a tight consolidation phase at $116,704, with minimal price movement of -0.01% over the past day [1]. This pattern is historically associated with a strong potential for a sharp upward breakout, especially in the presence of positive macro developments [1].

The coiled spring setup is reinforced by bullish technical signals, including a Relative Strength Index (RSI) of 63.04, which remains in healthy territory, and bullish alignment of key moving averages such as the 20-day ($115,068), 50-day ($115,266), 100-day ($115,728), and 200-day ($114,791) exponential moving averages (EMAs) [1]. These levels provide multiple support layers, offering institutional investors a robust foundation as they await a major directional move [1]. Meanwhile, the MACD stands at 325.09 with a positive histogram of 63.86, indicating strong underlying bullish momentum [1].

The current price consolidation is within a range of $116,622 (low) to $116,723 (high), representing one of the tightest trading ranges in Bitcoin’s history [1]. This phase is often a prelude to a significant breakout, particularly when supported by major regulatory or institutional developments [1]. The 401(k) access initiative is expected to open the floodgates for institutional capital, as it will allow American workers to include Bitcoin in their retirement portfolios [1]. Galaxy Digital CEO Mike Novogratz has highlighted that this could trigger a “monster amount of capital” to flow into Bitcoin, with “tons of money” expected to “pour in” [1].

The reported executive order from Trump is viewed as a transformative catalyst for mainstream crypto adoption [1]. It aligns with broader institutional interest in Bitcoin, evidenced by corporate treasury strategies and growing real-world adoption, such as Sheetz gas stations offering 50% Bitcoin payment discounts [1]. Analysts at MEXC Research, including Chief Analyst Shawn Young, have also emphasized that the bull market remains intact as long as Bitcoin holds above $100,000 and institutional demand remains strong [1].

Market fundamentals further support the bullish narrative. Bitcoin maintains a dominant 60.88% share of the crypto market with a $2.32 trillion market cap, reflecting continued institutional confidence [1]. Volume has surged 7.28% to $59.82 billion, and the volume-to-market cap ratio of 2.53% suggests institutional accumulation rather than speculative activity [1]. Additionally, social sentiment remains positive, with a 77% positive sentiment score, 76.25 million total engagements, and 253.77K mentions in the past day [1].

ChatGPT’s BTC analysis also outlines three potential 90-day price scenarios. The most probable is a 45% chance of a 401(k) catalyst-driven breakout to $130K–$140K, provided volume sustains above 50K daily and Bitcoin breaks through the $117K resistance [1]. A 35% probability remains for continued consolidation between $115K–$118K if regulatory delays persist, and a 20% chance of a macroeconomic-driven correction to $110K–$112K [1].

The immediate next step for Bitcoin is a decisive break above $116,724, which would confirm the breakout from the coiled spring formation [1]. If successful, the 401(k) initiative could accelerate Bitcoin toward $130K within 90 days, with potential for further gains to $140K+ under strong institutional demand [1]. However, a failure to break above the tight range could prolong consolidation between $115K–$116K, offering an optimal accumulation window ahead of potential $200K+ targets [1].

Source:

[1] ChatGPT’s BTC Analysis Reveals Coiled Spring Formation at $116,704 as Trump Plans 401(k) Crypto Access. https://cryptonews.com/news/chatgpts-btc-analysis-reveals-coiled-spring-formation-at-116704-as-trump-plans-401k-crypto-access/