According to an X post by crypto trader Merlijn The Trader, Bitcoin (BTC) follows the megaphone pattern, positioning the top cryptocurrency for potential upside momentum. However, for the pattern to play out, BTC must stay above $72,000.
BTC Drops Below $80K
Earlier today, BTC tumbled below the critical $80,000 price level, hitting a low of $78,390 on the Binance cryptocurrency exchange. At the time of writing, the flagship digital asset has a total market cap of $1.57 trillion. Despite the recent slump, crypto analysts remain confident in BTC’s long-term bullish outlook. Sharing a monthly trading chart, Merlijn The Trader highlighted that Bitcoin follows the broadening wedge known as the megaphone pattern. For the uninitiated, the megaphone pattern, or broadening wedge, is a technical chart formation where Bitcoin’s price exhibits higher and lower lows, creating an expanding shape. This pattern signals increasing volatility and market indecision, typically preceding a strong breakout or breakdown.
While BTC has a risk of breaking down from its current range, historical trends suggest that the digital asset is likely to break out to a higher price range. The chart shows how BTC has historically broken to the upside—highlighted in green—from previous market cycle tops, successfully retested the breakout, and entered a parabolic phase. The chart also highlights that market cycle tops have typically coincided with an MVRV Z-Score trendline. Currently, the MVRV Z-Score is well below the red trendline, suggesting that BTC may still have room to rise before any significant correction.
To explain, the MVRV Z Score for Bitcoin is a metric that compares BTC’s market value to its realized value, helping to identify overbought or oversold conditions. A high MVRV Z-score suggests Bitcoin may be overvalued, while a low score indicates it could be undervalued. According to the chart, BTC’s current MVRV Z-score is around 2. This score has typically topped slightly above 4 in the last three market cycles.
Bitcoin Struggles Amid Promises
Despite US President Donald Trump’s promises of creating a favorable regulatory environment for cryptocurrencies and establishing a Strategic Bitcoin Reserve (SBR), digital asset prices have failed to reflect these positive developments. Experts believe that escalating tariff tensions and the possibility of a potential economic recession may negatively affect BTC’s price action. Coinbase analysts attribute BTC’s recent slump to the “absence of positive catalysts.”
Bitcoin Struggles Amid Promises” could allude to the continuous fluctuation in Bitcoin’s price despite its claims as a distributed store of value or a future currency. This conflict is partly caused by regulatory uncertainty, market manipulation, and perceived volatility of several elements. Because of its price swings, scalability problems, or long transaction times in some situations, promises around Bitcoin’s acceptance as a worldwide payment system or hedge against inflation usually suffer.
Further, crypto analyst Ali Martinez recently remarked that BTC may face further downsides of $75,000 before it finds relief from the ongoing price correction. BTC trades at $78.50 at press time, down 4.5% in the past 24 hours.
Final thoughts
The paper thoroughly studies the present state of Bitcoin’s market and future movement possibilities. This implies that Bitcoin is using the expanding wedge, or megaphone pattern, a technical chart shape that usually indicates higher volatility and uncertainty in the market. Although this trend usually comes before a significant breakout, Bitcoin must remain above $72,000 to play out favorably. Should it be so, there is a possibility for increasing momentum.
Currently roughly 2, the MVRV Z-Score also points to a positive future, implying that Bitcoin might still be underpriced and has space to climb before any significant drop. Historically, Bitcoin has shown to break to the upside when the MVRV Z-Score has been below the red trendline.
Notwithstanding these encouraging signs, Bitcoin has encountered difficulties like the lack of primary positive triggers and the general state of the economy. Its price drop has resulted from trade tensions and the possibility of an economic recession. Analysts have also noted that Bitcoin would still fall below $75,000 before some relief.
