Heightened tensions between Israel and Iran have prompted a global retreat from risk-oriented assets, including Bitcoin (BTC). The leading cryptocurrency by market capitalization has experienced a 1.7% decline in the last 24 hours. Nevertheless, several technical indicators suggest that Bitcoin may be on the verge of reaching a new all-time high (ATH) in the near future.
Bitcoin is reportedly following the ABCD pattern, as noted by crypto analyst Titan of Crypto in a recent post on X. Currently, Bitcoin is trading within a wedge formation, with the potential to reach as high as $137,000 if it manages to break out. The ABCD pattern is a well-known chart setup characterized by four points and three legs—AB, BC, and CD—where AB and CD are generally equal in length, and BC acts as a retracement. This pattern helps traders identify potential reversal zones and indicates when a price movement may be losing momentum.
Additional technical indicators also support the possibility of a new ATH for Bitcoin. Analyst Crypto Caesar highlighted a 4-hour Bitcoin chart that reveals a bullish double bottom pattern, suggesting that BTC is poised for a recovery. Similarly, fellow commentator Jelle identified a cup and handle pattern on the daily BTC chart, indicating that Bitcoin has formed the "cup" and is now developing the "handle," which typically precedes a significant price increase.
Moreover, trader Merlijn the Trader referred to the Hash Ribbons, an on-chain indicator historically linked to major price rallies. Merlijn shared a daily BTC chart, illustrating that the last four instances of this signal were followed by substantial upward trends in Bitcoin's price. The Hash Ribbons indicator utilizes Bitcoin’s 30-day and 60-day hash rate moving averages (MA) to detect miner capitulation and subsequent recovery, with a bullish signal emerging when the short-term average crosses above the long-term average.
Despite Bitcoin holding above the significant $100,000 threshold, some worrying signs are beginning to surface. The cryptocurrency was recently rejected from the $110,000 resistance level, temporarily giving bears the upper hand. On-chain data indicates that long-term holders are starting to exit the Bitcoin market, while retail investors are beginning to participate. Such trends are typically observed in the latter stages of a bull market. Concurrently, short-term holders are showing diminishing confidence in BTC, as reflected by recent on-chain activity. At the time of writing, Bitcoin is trading at $105,568, down 1.7% in the past 24 hours.
