Bitcoin is approaching a critical juncture as its textbook ascending triangle converges with a tight trading range. Consolidation near key support and resistance levels sets the stage for a potential breakout or breakdown, making the next moves crucial for market momentum.

Ascending Triangle Signals Strength

Alpha Crypto Signal, in a recent post, highlighted that Bitcoin is currently shaping a textbook ascending triangle pattern on the daily chart — a well-recognized bullish continuation setup. The analyst explained that price action is consolidating just under the horizontal resistance zone at $122,500, while a series of higher lows continues to form along the rising trendline, signaling strong underlying demand.

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The analyst emphasized that as long as BTC holds above the 9 EMA at $118,738 and respects the ascending triangle’s support line, the overall bias remains bullish. These levels are crucial in maintaining the pattern’s structure, and a break below them could shift sentiment in favor of the bears. The persistence of higher lows indicates that buyers are consistently stepping in, preventing significant pullbacks, as indicated on the chart.

In conclusion, Alpha Crypto Signal stated that a clean break above the $122,500 resistance, backed by strong volume, could open the door for BTC to push toward a new all-time high. Such a move is likely to confirm the ascending triangle breakout and potentially trigger the next major bullish wave in the market.

Bitcoin Stuck Between $112,592 And $123,334

In an X post, X_Crypto, after examining Bitcoin’s action in a 4-hour timeframe, revealed that the flagship asset is currently trading within a defined range between $112,592 and $123,334, as highlighted on the chart. Meanwhile, the price is hovering around $119,106, with local support at $117,445 and the nearest resistance set at $123,334.

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The analyst noted that above the current range, $124,576 stands out as a key resistance zone. If this level is breached, the next upside target would be $127,272, which could serve as a profit-taking point in a bullish scenario. These levels will be critical in determining the strength of any upward continuation.

On the downside, X_Crypto pointed out that a break below $117,445 could open the way for a drop toward $112,592 — the lower boundary of the range and a strong support zone where buyers are likely to step in. This area, the writer stressed, will be pivotal for defending the broader bullish structure.

Lastly, indicators on the lower timeframes, as mentioned by X_Crypto, are showing local oversold conditions, hinting at a potential short-term bounce. However, the analyst cautioned that without sustained consolidation above $119,106, selling pressure could persist, limiting any meaningful upside momentum.

Featured image from Getty Images, chart from Tradingview.com

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Crypto analyst Crypto Bullet has revealed a bullish pattern for the Dogecoin price, which could send the meme coin above $3.2. The analyst also provided a timeline for when the foremost meme coin could reach this price target. 

Dogecoin Price Eyes Rally Above $3.2 As Textbook Accumulation Cylinder Forms

In an X post, Crypto Bullet revealed that the Dogecoin price has printed a textbook accumulation cylinder, which provides a bullish outlook for the foremost meme coin. His accompanying chart showed that DOGE could rally above $3.2, marking a new all-time high (ATH) for the meme coin. 

The crypto analyst stated that based on this bullish pattern, the Dogecoin price rally to this target should start in the next few months. He added that the catalyst for this price surge is unknown, but affirmed that something interesting is coming. Crypto Bullet also noted that BTC dominance is topping out and that this could be the perfect recipe for a DOGE pump. 

Crypto analyst Kevin Capital recently suggested that a potential monetary easing policy from the Federal Reserve could be what sparks the next bull run for the Dogecoin price. He highlighted the fact that the Fed is projected to cut interest rates in June. The analyst expects DOGE to surge as this increasing money supply flows into the meme coin. 

Interestingly, June is also the timeline crypto analyst Master Kenobi provided for when the Dogecoin price could reach a new ATH. He predicted that DOGE would rally to as high as $0.9 during this period. Meanwhile, the analyst warned that it is still uncertain whether the meme coin will break past the psychological $1 price level. 

Update On DOGE’s Price Action

In an X post, Kevin Capital provided an update on the current Dogecoin price action. He noted that DOGE has held the macro .382 and the macro down-trending support at around $0.14. He further remarked that the monthly super trend has not yet gone vertical in this cycle. The monthly Relative Strength Index (RSI) is also at the same level it was at when the meme coin was at $0.11, with much room to rally to the upside. 

The analyst stated that, with the market entering the easing phase of the monetary cycle, he expects Bitcoin’s dominance to reach a macro top in the summer. Kevin Capital predicts that altcoins, especially the Dogecoin price, will then witness a massive surge once this happens. He urged market participants to ignore the short-term noise and focus on the long-term trajectory. 

At the time of writing, the Dogecoin price is trading at around $0.18, up 3% in the last 24 hours, according to data from CoinMarketCap.

Featured image from Getty Images, chart from Tradingview.com

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Remember the last time you went on vacation? After locking the door and heading toward your car, you likely turned back abruptly to ensure the lock was secure before continuing your journey.

Financial markets, led by a range of human emotions, exhibit similar behaviors. After a convincing move beyond a long-held resistance, assets typically return to confirm the validity of the breakout. That serves as a test of the strength of the former resistance-turned-support, following which bigger rallies unfold.

The “breakout and retest play” phenomenon is well-known across asset classes. Bitcoin’s (BTC) ongoing sell-off might be just that – a healthy retest of the breakout point or the former resistance-turned-support of $73,757 breached in November.

In other words, the downward momentum could run out of steam at or closer to these levels, potentially setting the stage for a bigger run higher.

BTC has dropped over 15% to under $80,000 this month, exposing the former resistance-turned-support at $73,757. Prices broke above that level in early November, ending months-long consolidation after pro-crypto Donald Trump won the U.S. Presidential election.

The tendency of markets to retrace or revisit the breakout point before staging more enormous rallies has its roots in the behavioral aspects of investing.

People are generally risk averse when it comes to securing gains. So, when facing profits, traders quickly book those instead of allowing the winning trade to run wild. The so-called prospect theory explains why post-breakout rallies abruptly run out of steam, often leading to a retest of the breakout point. BTC holders have been taking profits around the $100K mark since December.

Now, as prices turn lower and near the breakout point, in this case, $73,757, market participants who missed the initial rally jump in, ensuring the level holds. The resulting bounce from the former resistance-turned-support draws in more and more buyers, potentially yielding a bigger rally.

That’s precisely what happened in the third quarter of 2023 and August-September 2020.

On both occasions, the breakout and retest produced bigger rallies to new record highs. Traders, however, need to note that a failed retest or a lack of a meaningful bounce indicates underlying weakness that can evolve into a full blown downtrend.

Over the years, I have seen numerous examples of retests of breakouts/breakdowns leading to bigger moves in traditional markets.

Consider the yield on the 10-year Japanese government bond. It triggered a double-bottom breakout in January 2024 and revisited the breakout level multiple times before rising to multi-year highs.

The AUD/USD pair dived out of a major support trendline in December, hinting at a deeper slide. The pair bounced to the trendline resistance early this month only to see sharp losses this week.