Important takeouts:
Bitcoin’s bullish megaphone pattern suggests that this cycle is reviving between $144,000 and $260,000.
Signs of panic from short-term BTC holders suggest potential local bottoms.
Analysts say Bitcoin (BTC) price action creates bullish megaphone patterns across multiple time frames.
BTC prices can reach $260,000 this cycle
Bullish megaphone patterns, also known as vast wedges, form when prices create a series of higher and lower lows. As a technical rule, breakouts above the upper limit of the pattern can cause parabolic rise.
The Bitcoin daily chart shows two megaphone patterns, as shown in the diagram below. The first is a small one that has formed since July 11th, and the recent $108,000 rebound from the low-trend line of patterns suggests that the formation is actually unfolding.
Related: Bitcoin can hit $160K by Christmas with “average” Q4 comeback
This pattern is confirmed to surpass the top trendline, which coincides with the new all-time highs reached on August 14th, about $124,900 above. The measurement target for this pattern is $144,200, or 27% increase from the current level.
The second is the larger megaphone pattern that has been formed for the “last 280 days,” as analyst Galaxy pointed out in Thursday’s X-Post.
Bitcoin is currently trading near the top trendline of the megaphone, which is around $125,000. Similarly, breaks above this level will check the pattern and drive the rally’s pass to $206,800. Such a move will increase gross profit to 82%.
Meanwhile, crypto influencer Faisalbaig highlighted a breakout from the huge megaphone pattern in Bitcoin’s weekly time frame.
“The next leg is inevitable.”
Bitcoin has escaped this bullish megaphone pattern.
The next leg is inevitable.
Shaa allah pic.twitter.com/ieipkrosvv– Faisal Baig Binance USDT Signal (@FBMSKILLS) August 20, 2025
As reported by Cointelegraph, Bitcoin’s recent pullback to $108,000 could be a shakeout before the new all-time best.
BTC Short Term Holder Metric hits April lows
12% of Bitcoin fell from an all-time high of $124,500, and investors holding assets for less than 155 days – were sold at loss, so they were sent into panic mode.
This has serious implications for the STH market value realized value (MVRV) ratio, and represents the conditions for the low boundary of the Bollinger Band (BB) and is ranked unsold.
“In a pullback to $109K, $BTC tapped the ‘oversell’ zone of the short-term holder MVRV Bollinger band,” analyst Frank Fetter said on Thursday’s X-Post.
The accompanying chart shows a similar scenario in which Bitcoin bottomed out for $74,000 in April. The BB oscillator fell to a sold-out state, up 51%, before Bitcoin began recovering.
With the latest drawdown, the STH MVRV on sale suggests that BTC prices are scheduled for an upward relief bounce, likely to bring in a similar recovery as in April and August.
As reported by Cointelegraph, retail and institutional accumulation is currently at its highest since falling below $75,000 in April.
This article does not include investment advice or recommendations. All investment and trading movements include risk and readers must do their own research when making decisions.
