There’s Bitcoin above the key trend line, but under the ATH – is there the next rally road?

Bitcoin’s recent price action has put cryptocurrencies at a pivotal crossroads. It’s broken above the major long-term trendlines, but remains trapped in a consolidation pattern below the all-time high (ATH). This double dynamic creates a persuasive and uncertain environment, encouraging investors to reflect on the most important questions in the market. Is the next explosive rally finally loaded?

Bitcoin breaks the long-term trendline: the familiar cycle signal

Veteran crypto analyst Cryptoelites recently revealed a very bullish perspective on Bitcoin’s recent price action. Analysis shows that Bitcoin has successfully broken beyond its chart’s important long-term trendlines, a movement that marks a major change in the market trajectory.

Following this breakout, Bitcoin has entered the consolidation phase. This pattern is particularly noteworthy as it reflects behavior seen in previous market cycles.

Such post-destruction integration has historically served as a precursor to a much larger price movement. Based on this historical precedent and current chart patterns, analysts are confident that a major movement is on the horizon.

BTC faces strong rejection in the key resistance zone

Despite the optimistic signal born from Bitcoin’s recent trendline breakout, not all analysts are sure the market is ready for a full-scale gathering. In a recent update, Alpha Crypto Signal noted that BTC is still facing strong rejection in the key horizontal resistance zone of the daily chart. This resistance continues to focus on price action and keeps the broader structure tilted towards a bearish attitude.

Analysts highlighted that upward movements from current levels are risky for a temporary recovery unless Bitcoin achieves a compelling breakout that surpasses ATH. In the analyst’s view, such a move can easily turn into “dead cat bounce.” This is a short-lived rally that cannot establish sustainable bullish momentum.

In addition to this note, Alpha Crypto Signal also expressed skepticism about the ongoing Altcoin Rally, describing it as a potential liquidity trap. Experts say market makers can use this surge to lure retailers into premature long positions before triggering their next major downward leg. This strategy is a recurring pattern in past cycles and should not be underestimated by market participants.

Still, Crypto analysts acknowledged that there are short-term opportunities. Experts emphasized that if traders adopt strict stop losses and maintain disciplined risk management, the longing bounce remains a viable strategy. Currently, the market is in the “trap realm”, demanding accuracy and attention, trading movements, but not being caught up in a setup designed to shake carelessness.