Bitcoin (BTC) experienced a surge following Nvidia Corp.’s stronger-than-expected revenue outlook, which initially calmed fears of an overheating AI bubble. However, these gains were short-lived as the Dow Jones Industrial Average reversed a 700-point rally to close in negative territory, and US stocks experienced a sell-off. Bitcoin subsequently fell to a new monthly low of $86,400, with data suggesting further downside potential.
Bitcoin Mirrors Q1's Bullish Reversal Fractal: Analyst
According to analyst Cas Abbé, Bitcoin's recent pullback is mirroring the bullish reversal structure that occurred in Q1 2025. At that time, BTC lost momentum near its all-time high, dropped below a key support level, and temporarily decoupled from a rising stock market before entering a multi-week accumulation range. Abbé's analysis indicates that a similar pattern has resurfaced in recent months, suggesting that BTC is likely to enter a consolidation phase between $85,000 and $100,000 for approximately three to four weeks.
Both corrections were influenced by broader macroeconomic concerns. The Q1 2025 sell-off was triggered by a US tariff war, while the current pullback has been fueled by concerns over a potential AI bubble. These anxieties significantly impacted tech stocks and subsequently spilled over into the cryptocurrency market before Nvidia's positive revenue outlook provided some market stabilization.
This fractal pattern suggests an increased probability of Bitcoin retesting the $100,000 resistance level by the end of the year. Analyst BitBull supports this bullish reversal outlook, focusing on Bitcoin's technical structure within a descending channel and its deeply oversold conditions observed on Thursday. BTC was trading near the lower boundary of this multi-week downtrend, an area that has historically served as an accumulation zone during previous corrections. Furthermore, Bitcoin's weekly relative strength index (RSI) has entered oversold territory for the first time in several months.
BitBull posits that these combined signals indicate potential local bottoms, suggesting that BTC could rally towards the $98,000 to $100,000 range in the near future.
Rising Wedge Breakdown Flags $30,000 BTC Price Target
In contrast, analyst AlejandroBTC presents a more bearish perspective. He notes that Bitcoin has officially broken down from a significant rising wedge pattern that he had been monitoring for months. In traditional technical analysis, a rising wedge breakdown is often indicative of a trend reversal and can signal a substantial decline. AlejandroBTC's analysis of this structure suggests a long-term price target in the vicinity of $30,000, a level that coincides with multiple historical support zones on the weekly chart.
