- Bitcoin’s Megaphone Bottom pattern suggests a 30% surge, targeting $109K before a potential breakout to new highs.
- Expanding volatility signals higher highs and lower lows, with critical support at point 4, fueling bullish momentum.
- A confirmed breakout past point 5 could spark strong buying pressure, but failure may lead to consolidation or a pullback.
According to analyst Javon Marks, Bitcoin has remained in the “Megaphone Bottom” pattern, which has shown a potential breakout. According to the formation, Bitcoin can climb nearly 30%, going to an all-time high of nearly $109,000 before moving higher. The broadening pattern shows increasing volatility, with larger price swings and important support and resistance levels.
Source: Javon Marks
Bitcoin Forms a Megaphone Bottom Pattern
The Bitcoin price has moved in a widening pattern defined by higher highs and lower lows. The pattern has five points, numbered 1, 2, 3, 4, and a possible 5. Initially, Bitcoin climbed before resistance at point 1 made it fall back to point 2. Support held, allowing the price to rise to point 3, forming a new high. A subsequent decline to point 4 confirmed the lower boundary of the pattern.
Currently, Bitcoin is at point 4, aligning with a support zone. This area has historically provided strong buying interest, indicating potential upward momentum. The next anticipated move involves a surge toward point 5, completing the pattern and setting the stage for a breakout.
Potential Breakout and Market Implications
Technical analysis suggests that Bitcoin’s next move could involve a breakout beyond its current structure. Historically, a Megaphone Bottom pattern often leads to strong bullish momentum once the fifth wave completes. A decisive move above resistance could confirm further gains, pushing Bitcoin to new highs.
Besides, Bitcoin has a history of backing such a trend. A strong uptrend preceded the broadening shape, suggesting continuation rather than a reversal. In addition, the increasing volatility implies that participants have become active, with both buyers and sellers struggling for who should call the next trend.
Additionally, a breakout beyond point 5 could trigger increased buying pressure, driving Bitcoin past $109,000. However, failure to sustain momentum might result in consolidation or a minor pullback before the next move.
