Bitcoin’s drop to $109,000 shook traders and forced short-term holders to sell at a loss. But some chart watchers say the move may just be a reset. They see a path that could take Bitcoin as high as $260,000 before this cycle is over.
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Megaphone Patterns Point to Explosive Upside
Analysts are tracking two megaphone patterns on the chart. The smaller one has been building since July and already held at $108,000. If Bitcoin can push through resistance near $124,900, the setup points to $144,000. This level is also close to the recent all-time high, making it a key line to watch.
The bigger pattern has been forming for nearly 280 days. A break above its upper line around $125,000 could open the way to $206,800, which would be an 82 percent rally from where Bitcoin trades now. Some analysts are going even further. One says the larger structure could support a run all the way to $260,000, calling the next move “inevitable.”
Short-Term BTC Holders Capitulate
The pullback has also shaken out many short-term holders. These are investors who have owned coins for less than 155 days. Many sold into the drop, which pushed a key ratio known as the MVRV into oversold territory. The last time that happened was in April, when Bitcoin bottomed near $74,000 before rallying more than 50 percent.
Accumulation is another sign the floor may be close. Both retail buyers and institutions have been adding to positions during the decline. Data shows that demand has now reached its highest level since the April reset.
Even after the drawdown, Bitcoin is still only about 12 percent below its all-time high. If the megaphone patterns and the on-chain signals are right, the latest selloff could turn out to be just simply a cooling-off period before the trend continues.
At the time of writing, Bitcoin is sitting at $112,855.67.
