Bitcoin (BTC) shows strong potential to break out from its current consolidation range in the coming days—potentially reclaiming its all-time high (ATH) and entering a price discovery phase.
Key Takeaways:
- Bitcoin's technical setup suggests an imminent upward breakout, with the ATH within reach.
- One bullish target projects BTC/USD at $116,000 by early next week, decisively escaping its narrow trading range.
- A brief retracement before resuming the uptrend remains a plausible scenario.
Bitcoin Price Signals Classic Breakout Pattern
Over the weekend, BTC/USD hovered near $103,000**, exhibiting minimal volatility ahead of the weekly close on May 18. Traders now eye a liquidity grab, with **$105,000 and $103,000 identified as key targets (per CoinGlass data).
"Bitcoin is coiling up in this descending triangle with dwindling volume—a textbook setup for a breakout," noted prominent trader Alan in his latest analysis on X. His short-term price target: $116,000 early next week.
Another trader, Mikybull Crypto, highlighted an "intraday diamond pattern breakout," reinforcing bullish momentum.
Strong Fundamentals Support the Rally
- U.S. buyer demand continues to fuel BTC’s push toward six-figure prices, evidenced by spot premiums on Coinbase.
- "The market has solid underlying demand," added Daan Crypto Trades, emphasizing sustained investor interest during macroeconomic uncertainty.
Caution Amid Unresolved Resistance
While optimism prevails, some traders anticipate a short-term pullback:
- "BTC’s inability to breach resistance this week hints at a potential retracement first," remarked CrypNuevo.
- Relative to equities, Bitcoin has yet to overcome its final resistance zone, per Daan’s analysis.
FAQ Section
Q: What’s driving Bitcoin’s potential surge to $116K?
A: Technical breakouts, shrinking volatility, and strong U.S. institutional demand are key catalysts.
Q: Could BTC retrace before hitting new highs?
A: Yes—some traders expect a brief dip to reset momentum before resuming the uptrend.
Q: How reliable are diamond/descending triangle patterns?
A: These are historically high-probability setups, but always confirm with volume and broader market sentiment.
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