Could A Major Reversal Be Next For Bitcoin?

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 has seen notable bearish movement since its recent failed attempt to reclaim the $100,000 price level. However, certain developments suggest that a rebound might be imminent.

After failing to reclaim the $100,000 mark, BTC may be preparing for its next leap higher, based on a trend highlighted by crypto expert and trader Captain Faibik.

In an X (formerly Twitter) post, Captain Faibik shared his analysis, showing that BTC is displaying signs of a possible recovery as it forms a crucial chart pattern.

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.

According to Captain Faibik, this wedge is displaying crucial support at the $96,000 level, and a bounce from here could be expected.

If the wedge plays out, the analysis suggests that BTC may reach 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 points out 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.