The weekly chart for Bitcoin (BTC) reveals an intriguing technical setup, signaling anticipation among market participants for a significant price movement. The current chart formation indicates a pivotal point is approaching, with an expected 11% move, as suggested by recent price action.
The recent candlestick pattern mirrors a “tweezer” bottom, characterized by wicks touching down into a crucial demand zone situated around $40,000. This zone historically serves as a critical support level where buying interest tends to surge, implying potential upward pressure. However, it’s noteworthy that the topside of the previous weekly open, ranging between $44,000 and $45,000, has been breached. This breach exposes a supply zone where sellers have historically intervened, potentially acting as a barrier to upward movements.
Within this technical context, two primary scenarios could unfold in the near term. In the bullish scenario, Bitcoin is expected to rebound from the $40,000 demand level, supported by the tweezer bottom formation. If buyers maintain control, a breakthrough of the $44,000-$45,000 supply zone could propel BTC toward an 11% move, targeting the mid-$40,000 region and potentially testing the $48,000 resistance.
Conversely, in the bearish scenario, if the $40,000 level fails to hold as support, Bitcoin may experience a retreat, challenging lower support levels. This downside movement could result in an 11% drop, with potential testing of the $36,000 zone, where the market may seek new demand.
Recent discussions around inscriptions and high Bitcoin fees highlight the asset’s robust network while raising concerns about scalability and transaction costs. Simultaneously, a bullish sentiment persists around miner companies, indicating confidence in the sector’s profitability and long-term growth, despite ongoing price consolidation.
Beyond Bitcoin, the contrasting growth in Solana stands out against perceived stagnation in Ethereum’s DeFi ecosystem, some community members even describing it as “dead.” This divergence in sectoral momentum has the potential to influence capital flows within the crypto market, potentially impacting Bitcoin’s trajectory in the coming weeks.
