Bitcoin ‘Megaphone Pattern’ Signals Big Move—Is Now the Time to Buy

Bitcoin (BTC) has recently experienced a sharp price drop, falling below the crucial $80,000 level and reaching a low of $78,390 on Binance. Despite this setback, crypto analysts believe BTC may be gearing up for a significant move, citing a technical pattern known as the ‘megaphone pattern’ or broadening wedge.

Crypto trader Merlijn The Trader highlighted this pattern in a recent post on X (formerly Twitter), explaining that Bitcoin’s price action is forming a series of higher highs and lower lows, creating an expanding shape on the charts. Historically, such formations have preceded major breakouts in Bitcoin’s price cycles.

What Is the Megaphone Pattern?

The megaphone pattern, also called the broadening wedge, is a technical indicator that suggests increasing market volatility and uncertainty. It is characterized by widening price swings, which often lead to a strong breakout in either direction.

According to historical data, Bitcoin has frequently broken to the upside from similar formations, with price surges following each breakout. If BTC follows this pattern again, it could mean another bullish phase for the world’s largest cryptocurrency.

However, there’s one key level to watch—$72,000. Analysts warn that BTC must stay above this level for the bullish breakout scenario to remain intact. If Bitcoin fails to hold this support, it could signal further downside movement.

MVRV Z-Score Suggests More Room for Growth

Another factor reinforcing the bullish case is the MVRV Z-Score, a key metric that helps determine whether Bitcoin is overbought or undervalued. This score compares BTC’s market value to its realized value, providing insight into potential price movements.

Currently, Bitcoin’s MVRV Z-Score stands at around 2. In previous bull cycles, Bitcoin has topped out when this score surpassed 4. Since BTC is still below this threshold, some analysts believe there is room for further gains before any significant correction.

What’s Holding Bitcoin Back?

Despite the technical indicators pointing toward a potential breakout, Bitcoin’s price has struggled to reflect recent positive developments in the crypto space.

For instance, U.S. President Donald Trump has reaffirmed his support for a crypto-friendly regulatory environment and introduced a Strategic Bitcoin Reserve (SBR), a move that should theoretically boost market confidence. However, BTC’s price has yet to respond positively.

Analysts attribute Bitcoin’s sluggish performance to broader macroeconomic factors. Rising tariff tensions and concerns about a potential economic recession have weighed on global markets, leading to uncertainty among investors. Additionally, Coinbase analysts have pointed out a lack of strong positive catalysts driving Bitcoin’s next big move.

Short-Term Risks—Could Bitcoin Drop to $75K?

While Bitcoin’s long-term outlook remains bullish, some analysts warn of short-term volatility. Crypto expert Ali Martinez recently noted that BTC could dip further to $75,000 before stabilizing.

At the time of writing, Bitcoin is trading at approximately $78,500, down 4.5% in the past 24 hours. If BTC fails to maintain key support levels, traders may see further corrections before the next leg up.

Final Thoughts—Is Now the Time to Accumulate BTC?

Bitcoin’s megaphone pattern suggests that a major breakout could be on the horizon. However, with market uncertainty still weighing on price action, traders need to watch key support levels closely.

For long-term investors, dips like these could present buying opportunities, especially given the historical tendency of BTC to surge after similar chart formations. However, those looking for short-term gains should be prepared for potential volatility.

With Bitcoin’s price at a crucial turning point, the next few weeks will be critical in determining whether BTC continues its bullish trajectory or faces further corrections.

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