Bitcoin Nears Critical Breakout as $100K Milestone Signals Market Strength

• Bitcoin nears a pivotal breakout, with market watchers eyeing a bullish trend as the monthly close tests key resistance levels.
• Crypto cycles show parallels, with recovery phases marked by double bottoms, mid-cycle corrections, and sharp upward waves.
• Bitcoin’s $100K milestone, supported by a key breakout, underscores rising investor confidence and sustained bullish momentum.

Bitcoin is on the brink of a breakout, with the price testing the Power Law Corridor’s critical blue line. The monthly close, now just six days away, could confirm this pivotal move. Consequently, market participants are closely watching this critical juncture for further signs of bullish momentum.

A Tale of Two Cycles: 2014-2018 vs. 2018-2025

The cryptocurrency market showcases parallels between the 2014-2018 and 2018-2025 cycles. Both periods began with double-bottom formations, signaling robust accumulation phases. These patterns preceded strong upward movements, identified as Impulse Wave 1, which highlighted early market recovery.

However, mid-cycle corrections disrupted these growth phases, leading to temporary pullbacks. Despite these corrections, Impulse Wave 2 in both cycles demonstrated sharp and sustained market capitalization increases. The 2018-2025 cycle’s ongoing yellow-highlighted section reflects a continuation of this upward trajectory, hinting at further expansion. These patterns underscore a consistent cycle of growth, correction, and recovery in crypto markets.

Bitcoin Breaks Long-Term Resistance, Eyes $100,000

Bitcoin’s price action on weekly data reveals a multi-year journey through key levels and trends. Between late 2021 and early 2022, Bitcoin faced resistance, failing to breach a critical upward-sloping trendline. These rejections led to a prolonged downtrend, followed by consolidation in mid-2022.

However, in late 2024, Bitcoin finally broke above this trendline, marking a crucial shift in momentum. The breakout, indicated by a green circle, underscores renewed bullish strength. Post-breakout, Bitcoin surged above $100,000 by early 2025, holding firmly above this pivotal trendline.

This upward trend suggests the trendline, once a resistance, now acts as solid support. Additionally, the breakout aligns with growing investor confidence and increasing adoption. Bitcoin’s ability to maintain higher price levels highlights its robust bullish sentiment.