Despite recent volatility and a failed attempt to reclaim the $100,000 level, Bitcoin is showing signs of a potential rebound. According to crypto expert and trader Captain Faibik, Bitcoin’s daily chart reveals an Ascending Broadening Wedge formation, which has historically preceded upward momentum.
This bullish pattern emerges as Bitcoin bulls defend the crucial $96,000 support level. Captain Faibik believes that a bounce from this level could be imminent, potentially leading to a new all-time high between late February and early March. With stabilizing investor sentiment and positive on-chain indicators, Bitcoin may be poised for a significant move higher.
In addition to the Ascending Broadening Wedge, Bitcoin has also recently flashed an Ascending Triangle formation on the daily timeframe. This positive technical pattern typically indicates a possible breakout and continuation of an uptrend. However, to confirm a breakout, Bitcoin bulls need to surpass the critical resistance zone of $106,000. If successful, the next potential target could be the $120,000 mark, which would likely trigger further upside surges.
While short-term holders have been taking profits during the recent price dip, as evidenced by the decline in the Short-Term Holder (STH) MVRV indicator, a return to average levels suggests the end of a local overheated phase. If demand holds after this profit-taking, the market could enter a sideways trend. However, a drop in the STH MVRV below 1.0 would signal the development of a local bottom.
As Bitcoin navigates these key support and resistance levels, investors should keep a close eye on the $96,000 and $106,000 price points. A successful defense of the former and a breakout above the latter could pave the way for a significant rally in the coming weeks.
Tags: Bitcoin, BTC, Bitcoin price, technical analysis, market sentiment, Short-Term Holder MVRV, crypto trading
Source: https://bitcoinist.com/bitcoin-rebound-on-the-horizon/