Amid global de-risking in the face of escalating tensions between Israel and Iran, Bitcoin (BTC), the leading cryptocurrency, has experienced a 1.7% dip in the last 24 hours. However, despite this slight drop, various technical indicators still suggest a possible new all-time high (ATH) for BTC in the forthcoming months.
In a recent analysis by Titan of Crypto, it was revealed that BTC seems to be tracing the ABCD pattern. The cryptocurrency is said to be trading within a wedge formation, with the potential to reach $137,000 if a breakout occurs.
For those unfamiliar, the ABCD pattern is a well-known chart formation that includes four points and three legs – AB, BC, and CD. Typically, AB and CD are equal in length, while BC is a retracement. This pattern is useful in pinpointing potential reversal areas and signaling when a price movement may be losing its momentum.
A number of other technical indicators also suggest a potential new ATH for BTC. For instance, Crypto Caesar, another analyst, highlighted a bullish double bottom pattern on a 4-hour Bitcoin chart, indicating that BTC is set for a recovery. Furthermore, the commentator Jelle identified a cup and handle pattern on the daily BTC chart, usually a precursor to a significant upward shift.
Merlijn the Trader, a crypto trader, drew attention to the Hash Ribbons – an on-chain indicator often associated with major rallies. This indicator uses Bitcoin’s 30-day and 60-day hash rate moving averages (MA) to detect miner capitulation and recovery. A bullish signal appears when the short-term average crosses above the long-term one.
Despite these positive indications, there are emerging signs of concern. BTC was recently rejected from the $110,000 resistance level, allowing bears to gain temporary control. On-chain data also shows that long-term holders are starting to exit the Bitcoin market as retail investors join, a trend typically observed in the later stages of a bull cycle.
Simultaneously, there are signs of declining confidence among short-term holders, as reflected in recent on-chain activity. At the time of writing, BTC is trading at $105,568, down 1.7% over the last 24 hours.
