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- Bitcoin has reclaimed its 50-day EMA, a level that preceded past rallies.
- RSI and MACD indicators suggest selling pressure is easing.
- Analysts forecast a potential run toward $160K–$180K by early 2026.
Bitcoin is trading around $106,500, nearly 20% below its all-time high, but analysts say the correction looks more like a reset than a reversal. According to market watchers from The Bull Theory, Bitcoin’s latest weekly close above the 50-day Exponential Moving Average (EMA) marks a pivotal moment. Historically, every major rally in the last two years began after reclaiming this same level.
This pattern also mirrors setups from August 2024 and April 2025, when similar dips were quickly followed by strong rebounds. The analysts noted that Bitcoin’s Relative Strength Index (RSI) continues to sit within a long-term support zone—typically a prelude to renewed upside momentum.
Technical Indicators Flash Recovery Signs
Beyond price action, multiple indicators suggest selling pressure is fading. The Moving Average Convergence Divergence (MACD) has reached a historical reversal area—zones that preceded rallies in early 2023, late 2024, and Q2 2025.
Momentum has cooled, but there’s no technical signal hinting at a breakdown. Instead, analysts describe the recent pullback as a “cycle reset”, a healthy pause that allows Bitcoin to rebuild strength before another leg up.
Analysts Target $160K–$180K by Early 2026
Structurally, Bitcoin’s 20% retracement fits the average correction size observed in prior impulsive waves since the current cycle began. With the EMA reclaimed, RSI firm, and MACD stabilizing, analysts believe the setup aligns with previous pre-breakout formations.
Also Read: Bitcoin Supply Tightens as Demand and Institutions Surge
The Bull Theory suggests Bitcoin may consolidate sideways for several weeks, echoing the post-April 2025 pattern. However, this consolidation could mark the base for Wave 5 of the broader bull structure—potentially driving prices toward $160,000–$180,000 by Q1 2026.
A Calm Before the Next Rally
While volatility remains, the broader picture suggests strength, not weakness. As long as Bitcoin holds above key moving averages, the odds favor continuation over collapse. In short, this correction may be less about fear and more about preparation—for the next phase of expansion in the world’s leading cryptocurrency.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
