Key Points:
The bullish megaphone pattern for Bitcoin indicates that the price may reach between $144,000 and $260,000 during this cycle.
Signs of panic among short-term Bitcoin holders suggest a potential local bottom.
Bitcoin analysts point out that the price of Bitcoin (BTC) has formed a bullish megaphone pattern across multiple timeframes, which could drive BTC to set a new all-time high.
The bullish megaphone pattern, also known as an expanding wedge, refers to the price forming a series of higher highs and lower lows. According to technical analysis rules, if the price breaks above the upper trendline of the pattern, it typically triggers a parabolic rise.
As shown in the chart below, two megaphone patterns have appeared on the daily chart of Bitcoin. The first is a smaller pattern that has formed since July 11, with the price recently rebounding from the lower trendline at $108,000, indicating that the pattern is in play.
If the price breaks above the upper trendline at approximately $124,900 and coincides with the new high set on August 14, the pattern will be confirmed. The target for this pattern is calculated at $144,200, representing a 27% increase from current levels.
The second is a larger megaphone pattern, which analyst Galaxy stated on Thursday via X platform has "formed over the past 280 days."
Bitcoin is currently close to the upper trendline of the megaphone, situated around $125,000. Similarly, if it breaks above this level, it will confirm the pattern and open up space for a rise to $206,800, resulting in a total increase of 82%.
Meanwhile, crypto industry opinion leader Faisal Baig pointed out that Bitcoin has broken out of a giant megaphone pattern on the weekly level, with a target of $260,000.
Bitcoin has broken out of this bullish megaphone pattern. The next leg up is inevitable. IN SHAA ALLAH pic.twitter.com/iEIpKROSvv
According to Cointelegraph, Bitcoin recently fell back to $108,000, which may be a shakeout before a new high.
Bitcoin has retraced 12% from its high of $124,500, causing panic among short-term holders (STH, investors holding for less than 155 days), with many selling at a loss.
This has led to a significant decline in the market value to realized value ratio (MVRV) of short-term holders, which has dropped to the lower band of the Bollinger Bands (BB), indicating oversold signals.
Analyst Frank Fetter stated on Thursday via X platform: "When Bitcoin fell to $109,000, the MVRV Bollinger Bands for short-term holders entered the 'oversold' zone."
Related charts show that a similar situation occurred in April when Bitcoin bottomed at $74,000. After the Bollinger Bands oscillator fell into the oversold zone, Bitcoin began to rebound, rising 51% since then.
In the latest pullback, the MVRV of short-term holders has entered the oversold zone, indicating that BTC price is likely to rebound, potentially repeating the trends seen in April and August.
According to Cointelegraph, retail and institutional investors have continued to accumulate since BTC fell below $75,000 in April, now reaching new highs, which may also suggest that $108,000 is a phase bottom.
Related: 92 crypto-related ETPs are in the application process: "The floodgates are about to open."
Original article: “Bitcoin (BTC) ‘Megaphone’ Pattern Points to $260,000 Target, Technical Indicators Signal ‘Oversold’ Alert”
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