Bitcoin is trading in a tight triangle between $108K and $123K, and analysts expect a sharp breakout as pressure keeps building.
Strong support near $116K and rising buying interest could trigger a move past $123K, with $125K as the next key target for bulls.
Altcoins may rally soon as TOTAL2 nears its all-time high, following a pattern seen in past bull markets during re-accumulation phases.
Bitcoin is showing signs of an imminent breakout as it trades within a tightening triangle pattern near $118,000. Analysts agree that this consolidation phase could end in a major move. Current price action suggests Bitcoin is being squeezed between a downward resistance line and an upward support trend.
The trading range between $108,000 and $123,000 has been reduced by these convergent trendlines, forming a traditional breakout configuration.
According to Merlijn, Bitcoin’s price pattern now reflects a classic breakout triangle. Candlestick behavior shows a gradual narrowing of highs and lows. Each bounce has less range, suggesting a buildup of pressure. Currently, Bitcoin trades around $118,208 with minimal gains. However, the narrowing pattern hints at an explosive resolution once one side gives way.
Source: Merlijn The Trader
Key Levels Hold the Line for Bulls and Bears
Additionally, Marcus Corvinus highlights the importance of support around $116,000 to $117,000. Bitcoin remains above this zone despite recent sideways movement. Buyers are actively defending this level. Meanwhile, resistance near $123,000 keeps capping price rallies. The red trendline marks this selling zone, while the green zone signals buying interest.
Source: Marcus Corvinus
If bulls break the red resistance line, the price could surge toward $125,000. However, a break below the green support might drag Bitcoin back to $111,000. Consequently, this triangle’s breakout direction will set the tone for Bitcoin’s short-term momentum.
Altcoin Market Also Poised for a Surge
Moreover, Mousstache draws attention to the broader altcoin market. TOTAL2, which tracks the crypto market cap minus Bitcoin, is nearing its all-time high. A similar setup in 2016 and 2020 led to huge rallies. The current structure shows a re-accumulation phase, forming higher lows and double bottoms. Hence, if history repeats, altcoins could see parabolic gains.
Source: Moustache
Besides Bitcoin’s setup, the entire crypto market may enter a bullish phase. The confluence of chart patterns and historical cycles strengthens this outlook. Significantly, institutional interest and technical alignment support the case for another major leg up.
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