Bitcoin's 'megaphone pattern' breaks out; Is $270,000 next?

A trading expert is projecting that Bitcoin (BTC) has the potential to surge beyond the $250,000 mark at a time when the asset is basking in the glory of making history after making its first monthly close above $100,000 in January.

Gert van Lagen observed that Bitcoin is signaling a breakout from a long-term bullish “megaphone pattern,” which indicates the possibility of reaching a record high of $271,000, as he noted in an X post on January 30.

The megaphone pattern, formed on the two-week chart, is characterized by widening price swings with higher highs and lower lows, with an upper resistance trendline around the $120,000 level.

According to the analysis, if Bitcoin successfully breaks above and retests $120,000 as support, BTC will likely clinch a new record high, with $140,000 to $150,000 as a potential intermediate resistance. If the pattern fully plays out, Bitcoin could then target the $271,000 level.

Bitcoin’s path to $100,000

Another analyst, Captain Faibik, shared a similar outlook in an X post on February 1, suggesting Bitcoin is poised for further growth. He noted that $120,000 remains a key resistance level in the short term, based on Bitcoin trading within an ascending triangle formation on the daily timeframe.

The $106,000 zone is a key resistance level, repeatedly tested and crucial for Bitcoin’s upside. A decisive breakout could drive a surge to $120,000, while failure may lead to consolidation or a trendline retest.

Bitcoin’s fundamentals

Despite analysts maintaining a long-term bullish outlook, Bitcoin has experienced short-term bearish momentum amid geopolitical uncertainties. Risk assets, including Bitcoin, recorded capital outflows after President Donald Trump pushed forward with his proposed tariffs.

Specifically, starting February 1, the White House announced a 25% tariff on goods from Mexico and Canada. This downturn added to Bitcoin’s challenging week after the cryptocurrency was caught in a broader market selloff triggered by the emergence of the Chinese AI model DeepSeek, which led investors to reassess big tech’s investment in AI infrastructure.

At the same time, Bitcoin struggled to push further above $100,000 despite bullish news, such as a report indicating that the Czech National Bank approved a proposal to explore investing in BTC. It would be the first central bank to hold BTC reserves if implemented.

This development comes as European Central Bank President Christine Lagarde is cautious about Bitcoin investments.

Other market players, such as prominent cryptocurrency trader Michaël van de Poppe, remain confident that digital assets will likely see further upside despite the recent bearish momentum.

Bitcoin price analysis

As of press time, Bitcoin traded at $101,798, reflecting a short-term price drop. The asset has declined by 2.38% on the daily chart and 0.23% on the weekly chart despite remaining above the crucial $100,000 level.

Bitcoin must stay above the crucial $100,000 level to sustain bullish momentum and target higher levels. A breakdown could lead to increased volatility, while holding above this support strengthens the case for further gains toward $120,000 and beyond.

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