Volatility continues to linger within the general crypto market, and Bitcoin has seen notable bearish movement since its recent failed attempt to reclaim the $100,000 price level. Bitcoin may have failed to reclaim the $100,000 mark, but certain developments suggest that a rebound might be imminent.
Could A Major Reversal Be Next For Bitcoin?
In an X (formerly Twitter) post, crypto expert and trader Captain Faibik has outlined a trend that points to a bullish trajectory for Bitcoin in the short term. Captain Faibik’s analysis shows that BTC is displaying signs of a possible recovery as it forms a crucial chart pattern, indicating renewed strength.
Looking at Bitcoin’s daily chart, the flagship asset continues to trend in an Ascending Broadening Wedge formation. The emergence of this technical setup has historically preceded upbeat momentum, suggesting that BTC may be preparing for its next leap higher.
This bullish chart pattern comes as bulls defend the crucial support level of $96,000. Due to this, Captain Faibik is confident that a bounce from here could be incoming, according to the wedge.
In addition, the analyst expects the surge to result in a new all-time high in the upcoming weeks between late February and the beginning of March. With investor sentiment stabilizing and on-chain indicators flashing positive signals, BTC may attract the necessary momentum for a move to new highs.
Bitcoin recently flashed an Ascending Triangle formation on the daily time frame, suggesting a growing upside movement despite current market fluctuations. An ascending triangle formation is a positive technical pattern that typically indicates a possible breakout and continuation of an upward trend.
The chart shows that Bitcoin is gradually approaching the upper line of the triangle pattern for a breakout. However, Captain Faibik claims that Bitcoin bulls need to surpass the critical resistance zone of $106,000 in order to confirm a breakout.
Once the crypto asset confirms a breakout, the next potential target could be the $120,000 mark, a level that would probably trigger further upside surges. Meanwhile, BTC’s price is currently navigating key support levels as bearish pressure extends.
BTC Short-Term Holders Adopting Profit-Taking
During the waning price performances, BTC short-term holders have been taking profits as the Short-Term Holder (STH) MVRV indicator declines from $98,000 and 1.35 to average levels. Examining the drop, these short-term holders seem to have exited their positions to prevent significant losses.
When the STH MVRV is above 1.30 and 1.35, it often implies that a market is overheated and frequently witnessing sell-offs. A return to average levels hints at the end of a local overheated phase.
If demand holds after overheating and profit-taking, the market usually moves into a sideways trend. However, if the Short-term holder MVRV falls below the 1.0 level, it would signal the development of a local bottom.