- Bitcoin is forming a triangle that signals a strong move could come soon.
- The price could hit $106K before falling back to test lower levels.
- Market signals show Bitcoin may see big swings before a clear trend forms.
Bitcoin is forming a well-structured wave 4 triangle, setting the stage for a potential breakout to $106,951 before a correction, according to crypto analyst BigMike7335. The latest 4-hour chart of BTC/USD suggests a classic Elliott Wave setup, where price action is coiling within a contracting structure. At the time of the analysis, Bitcoin is trading at $95,087, reflecting a minor decline of 0.55%. If the current pattern holds, BTC could soon attempt a significant move upward before revisiting lower levels.
The chart highlights Bitcoin’s ongoing consolidation within a converging trendline with a well-defined ABCDE corrective wave. The expected price movement includes a push towards $106,951 (wave D) before a potential rejection leading back to $95,617 (wave E). If Bitcoin respects this pattern, a breakout from the triangle could determine its next major trend direction. A Fibonacci retracement level at 0.382 ($86,275) is also marked, signaling a possible downside risk in case of a breakdown.
Technical Indicators Support a Short-Term Rebound
Momentum indicators currently suggest a coming shift. The stochastic RSI at the bottom of the chart is overbought and could potentially short-term bounce. The moving averages, taken on the 4-hour timeframe, show that BTC has been trading in proximity to both the significant support levels and price levels close to the 50-day and 100-day moving averages. Traders should prepare for high volatility as BTC nears the apex of this formation if BTC holds its triangular structure.
Historically, Bitcoin tends to trap liquidity within corrective waves before making explosive moves. This pattern suggests that both bulls and bears could face short-term frustration before BTC confirms its next breakout direction. A clean push above the resistance could validate the $106K target, while a failure to hold the support zone could see BTC retesting $86K before regaining strength. With the market watching closely, Bitcoin’s next move will determine whether this wave structure holds or if a deeper correction unfolds.
