Bitcoin will continue its uptrend despite cross pressure – Here’s why

• BTC is forming a similar technical pattern on the chart to the one seen in 2020, which preceded a market rally.
• At the same time, multiple liquidity clusters above and below the current price levels place BTC at a crossroads.

Bitcoin [BTC] has seen a gradual recovery after experiencing a 2.54% drop over the past week, a result of a broader market decline. It has since posted a daily gain of 1.48%, attracting renewed attention from investors.

While market conditions are improving, there remains uncertainty about Bitcoin’s next move. This analysis from AMBCrypto sheds light on possible scenarios.

Is BTC following the 2020 pattern?

Insight from analyst, Mister Crypto indicates that BTC is currently mirroring the technical pattern it followed in 2020, which led to a significant rally after the asset broke through the $20,000 resistance level.

According to this pattern, BTC first experiences a rally, then drops to form a bottom, followed by another rally that creates a symmetrical triangle pattern before an explosive upward move.

Currently, BTC appears to be in the midst of this sequence. After a rally, it has now retraced and forming a bottom—perfectly aligning with the previous cycle.

If this pattern continues, it could signal that BTC will eventually break through the $100,000 resistance level.

Source: X

BTC faces two-way pressure amid liquidity clusters

According to Hyblock Capital, Bitcoin is currently under significant pressure, with liquidity clusters both above and below its current price, creating a scenario where the asset could move in either direction.

Above, the liquidity cluster is between $99,700 and $102,300, while below, it spans from $88,100 to $89,300.

Liquidity clusters often act as price magnets, drawing the market toward these levels to clear out orders before continuing its trend.

Source: X

AMBCrypto’s analysis suggests that BTC is more likely to break upward, clearing the cluster above, rather than decline. This view is supported by the funding rate and long-to-short ratio.

The Funding Rate, which tracks the balance between long (buyers) and short (sellers) positions, has increased, signaling that buyers are gaining control. At 0.0206%, this suggests continued upward momentum.

Additionally, the long-to-short ratio shows more long positions than short positions, with a reading of 1.0090, reinforcing the bullish sentiment.

Bullish confluence builds for BTC

Bitcoin is at a similar adoption stage to the internet in 1999, according to the Bitcoin Adoption S Curve.

Read Bitcoin’s [BTC] Price Prediction 2024–2025

This indicates that the market has yet to fully embrace Bitcoin, and as adoption continues to grow, the likelihood of further price appreciation increases, along with greater liquidity flowing into the asset.

Source: X

Together, these indicators suggest that BTC is more likely to trend upward rather than experience a sharp decline.