Bitcoin News: Megaphone Pattern Targets $260K as Oversold Metrics Signal Recovery

Key TakeawaysBitcoin’s megaphone pattern signals price targets between $144,000 and $260,000 this cycle.Short-term holders (STHs) show signs of capitulation, pushing BTC into oversold territory.A breakout above $125,000 resistance could trigger a parabolic rally.Bitcoin Megaphone Pattern Points Toward $260KBitcoin (BTC) is flashing a series of bullish megaphone patterns across multiple time frames, suggesting the next breakout could send BTC price toward $260,000, analysts say.The megaphone pattern, or broadening wedge, occurs when price forms progressively higher highs and lower lows. A confirmed breakout above the upper boundary typically signals a parabolic expansion phase.On the daily chart, BTC rebounded from the lower trendline at $108,000, validating the formation. A break above $124,900 (new ATH) would confirm the setup, with a measured move toward $144,200 (+27%).A 280-day megaphone pattern shows resistance near $125,000, with a breakout target of $206,800 (+82%).On the weekly chart, crypto influencer Faisal Baig highlighted an even larger megaphone targeting $260,000: “The next leg up is inevitable.”Short-Term Holders Signal Panic, Market OversoldBitcoin’s recent 12% correction from $124,500 to $108,000 shook out leveraged longs and pressured short-term holders (STHs), defined as wallets holding BTC for less than 155 days.The correction pushed Bitcoin’s STH MVRV ratio to the lower band of its Bollinger Bands, a classic oversold signal.Analyst Frank Fetter noted that BTC “tapped the oversold zone on the short-term holder MVRV BB” — the same condition seen in April before BTC rallied 51%.This suggests that $108,000 may have been a local bottom, with accumulation trends echoing those after April’s dip below $75,000.Why $125K is the Key Level to WatchFor the bullish megaphone to fully play out, Bitcoin must decisively break $125,000 resistance.Above $125K: Technical targets extend to $144K, $206K, and potentially $260K.Below $125K: Consolidation or a retest of $108K support remains possible.With institutional accumulation at peak levels and on-chain metrics showing panic exhaustion among STHs, analysts argue Bitcoin is preparing for its next expansion leg.Bitcoin’s oversold conditions, combined with megaphone breakout structures, suggest the leading cryptocurrency could be entering a new parabolic growth phase.If BTC clears $125,000, technical models project price targets ranging from $144K to $260K this cycle — levels that would mark Bitcoin’s most aggressive expansion to date.