Bitcoin’s 13% Breakout Path Survives 150% Profit Booking Surge, Charts Explain How
Despite a recent pullback driven by long-term holder profit-taking, Bitcoin's bullish chart structure remains intact, suggesting potential for a 13% move higher.Summary
Bitcoin recently corrected nearly 6% from its peak near $92,000, but technical analysis suggests this is controlled profit booking rather than a breakdown. The daily chart shows BTC trading within the handle of a cup-and-handle pattern above a rising neckline, indicating sustained bullish bias. Furthermore, a bullish divergence is present on the Relative Strength Index (RSI), where price made a lower low while RSI made a higher low, signaling weakening selling pressure.
On-chain data confirms the dip was due to long-term holders realizing profits, evidenced by a 150% surge in selling pressure from this group between January 14 and 18. However, demand remains strong, with Bitcoin ETFs seeing significant inflows. Crucially, large entities (whales holding over 1,000 BTC) continued accumulating during the dip, absorbing some of the selling pressure.
For the bullish structure to confirm a breakout, Bitcoin needs to reclaim $95,200, targeting $98,800 and potentially $111,800 (a 13% move). Invalidation of the pattern would occur if the price closes below $92,000, with a deeper break under $89,200 being the critical failure point.
(Source：BeInCrypto)