Bitcoin Weekly Analysis: Two Consolidation Phases

Market Overview
Bitcoin is currently consolidating after reaching $108K, forming a cup and handle pattern on the weekly timeframe. This is the second major consolidation phase in BTC’s recent uptrend. The first phase, seen earlier in the cycle, led to a powerful breakout, and history could repeat if BTC clears 88K–$90K.

BTC remains in a pre-breakout phase, and the coming weeks will determine whether it surges toward new all-time highs or undergoes a deeper correction.

Two Major Weekly Consolidation Phases
1st Consolidation Phase (July–Dec 2024):
BTC traded within a $56K–$72K range, forming the base of the cup.

Once BTC broke out of this range, it rallied straight to $108K, confirming a strong uptrend.

2nd Consolidation Phase (Feb–Present 2025):
BTC peaked at $108K and started a healthy retracement, forming the handle of the pattern.

It is now trading between $80K–88K, preparing for the next breakout.

This consolidation mirrors the first phase and could fuel another explosive move higher.

Technical Breakdown
1. Key Support & Resistance Levels
Support Zones:
$80K–82K → Short-term support; must hold to sustain bullish momentum.

$74K–$76K → If BTC drops lower, this zone should act as strong demand.

Resistance Zones:
88K–$90K → The breakout level; BTC needs to close above this to confirm bullish continuation.

$100K–$108K → Major resistance; if cleared, BTC enters price discovery mode.

2. Breakout Potential & Price Targets
A weekly close above $90K signals a confirmed breakout of the second consolidation phase.

Measured Move Target:

Short-Term: $108K retest.

Extended Target: $120K+ if bullish momentum continues.

3. Bearish Scenario & Invalidation
A failure to reclaim 88K–$90K could lead to an extended consolidation.

A break below $80K weakens the cup and handle setup.

If BTC drops below $74K, we may see a retest of the $72K–$74K range before a renewed attempt to break out.

Final Take: Preparing for the Next Big Move
Bitcoin’s price action closely resembles its first consolidation phase, which resulted in a breakout to $108K. The current consolidation is setting up for another strong move, with 88K–$90K acting as the key breakout zone.

If BTC follows the same pattern, we could see a powerful surge to $120K+ once resistance is cleared. However, failure to hold $80K may delay the breakout.

We should watch for a decisive weekly close above $90K as confirmation for the next major bullish leg!