Bitcoin’s megaphone pattern signals price targets between $144,000 and $260,000 this cycle.
Short-term holders (STHs) show signs of capitulation, pushing BTC into oversold territory.
A breakout above $125,000 resistance could trigger a parabolic rally.
Bitcoin Megaphone Pattern Points Toward $260K
Bitcoin (BTC) is flashing a series of bullish megaphone patterns across multiple time frames, suggesting the next breakout could send BTC price toward $260,000, analysts say.
The megaphone pattern, or broadening wedge, occurs when price forms progressively higher highs and lower lows. A confirmed breakout above the upper boundary typically signals a parabolic expansion phase.
On the daily chart, BTC rebounded from the lower trendline at $108,000, validating the formation. A break above $124,900 (new ATH) would confirm the setup, with a measured move toward $144,200 (+27%).
A 280-day megaphone pattern shows resistance near $125,000, with a breakout target of $206,800 (+82%).
On the weekly chart, crypto influencer Faisal Baig highlighted an even larger megaphone targeting $260,000: “The next leg up is inevitable.”
Short-Term Holders Signal Panic, Market Oversold
Bitcoin’s recent 12% correction from $124,500 to $108,000 shook out leveraged longs and pressured short-term holders (STHs), defined as wallets holding BTC for less than 155 days.
The correction pushed Bitcoin’s STH MVRV ratio to the lower band of its Bollinger Bands, a classic oversold signal.
Analyst Frank Fetter noted that BTC “tapped the oversold zone on the short-term holder MVRV BB” — the same condition seen in April before BTC rallied 51%.
This suggests that $108,000 may have been a local bottom, with accumulation trends echoing those after April’s dip below $75,000.
Why $125K is the Key Level to Watch
For the bullish megaphone to fully play out, Bitcoin must decisively break $125,000 resistance.
Above $125K: Technical targets extend to $144K, $206K, and potentially $260K.
Below $125K: Consolidation or a retest of $108K support remains possible.
