- Bitcoin’s monthly chart confirms a breakout from a multi-year bull flag, setting the stage for a fresh upward trend continuation.
- Technical projections and market cycle timing now converge at the $250K macro channel top as the next structural resistance level.
- Momentum is fueled by ETF capital inflows, post-halving supply tightening, and growing institutional adoption across global financial systems.
Bitcoin’s monthly chart has confirmed a multi-year bull flag breakout, signaling a potential major move within its long-standing macro channel.
Technical Structure Confirms Breakout
Bitcoin has respected a massive ascending channel for years, with each touch of its lower boundary marking cycle bottoms and each upper boundary test marking highs. This pattern has now evolved into a confirmed bull flag breakout on the monthly chart. The formation has been in development since 2021, coiling through periods of consolidation before breaking to the upside.
Prominent trader Merlijn pointed out that this move is rooted in technical structure and momentum, stating, “Bitcoin’s monthly chart just delivered the kind of signal long-term bulls dream about.” He emphasized that this isn’t a random surge but a structural breakout aligned with historical cycles.
Historical Cycle Alignment and Macro Channel Target
This breakout corresponds with the expansion phases of Bitcoin post-halving—where we tend to see the largest gains generally within 12–18 months following the event. Merlijn states the next rational resistance level is $250,000—the top of the macro channel, where trendlines and structural projections converge. The recent halving process has reduced the supply and created a favorable market environment that is positioned for higher prices.
Merlijn also said that Bitcoin is gaining traction due to global adoption, improvements in institutional custody, and declining confidence in fiat currency.
As long as Bitcoin holds its monthly closes higher than the breakout spot, there does not seem to be a change in trajectory. Merlijn commented, “$250K isn’t a fantasy—it’s the next logical level in Bitcoin’s long-term trendline.”
This structural breakout could mark the beginning of Bitcoin’s most aggressive move of the cycle, especially with key market catalysts in play.
Catalysts Driving the Momentum
The breakout comes at a time of increasing institutional interest and capital inflow. The approval and inflow into Bitcoin Spot ETFs have unlocked trillions in potential liquidity. Additionally, the latest halving event has reduced supply tightness, generating a market structure that supports price increases.
Factors such as global adoption, better institutional custody, and diminished confidence in fiat currencies are all helping drive Bitcoin’s momentum.
Breakout is not hype-driven but a response to technical structure, market timing, and macroeconomic trends. Bitcoin’s breakout, according to him, signals a structural shift that long-term participants have been anticipating.
