Bitcoin (BTC) is once again capturing the attention of traders and investors alike as signs point to a potential breakout in the near term. With momentum building and volatility shrinking, market participants are positioning for a decisive move—possibly toward new all-time highs. A growing number of analysts believe that Bitcoin could surge to $116,000 in the coming days, breaking out of its tight trading range and reigniting bullish sentiment across the crypto landscape.
This article explores the technical signals, market structure, and trader sentiment shaping Bitcoin’s next potential leg higher—while also addressing key resistance levels and possible pullback scenarios.
Bitcoin Consolidates Ahead of Potential Breakout
As of the May 18 weekly close, Bitcoin has entered a phase of extremely low volatility, a classic precursor to significant price movement. Trading around the $103,000 mark over the weekend, BTC demonstrated strong consolidation behavior—a sign that accumulation is underway before the next directional move.
According to data from Cointelegraph Markets Pro and TradingView, this tight price action reflects a coiling pattern often seen before explosive breakouts. Key liquidity zones have formed near $103,000 and $105,000, with CoinGlass data confirming these levels as focal points for market makers and algorithmic traders.
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The current pattern resembles a converging triangle—a well-known technical formation indicating compression before an imminent breakout. Volume has steadily declined during this phase, further reinforcing the idea that a sharp move is on the horizon.
Trader Predicts $116,000 Target Early Next Week
One voice gaining traction in the crypto community is that of popular trader Alan, who recently projected a bold short-term target: $116,000 for Bitcoin early next week.
“Next early week Bitcoin target: $116,000,” Alan stated on X, accompanied by a chart highlighting the tightening price range.
He emphasized that the decreasing volume within the triangle pattern suggests pent-up demand, which could be released violently once price clears key resistance. A breakout above $105,000 would likely trigger a cascade of long entries and liquidation of short positions, accelerating upward momentum.
Another trader, Mikybull Crypto, identified an “intraday diamond pattern breakout,” adding further credibility to the bullish outlook. While less common than triangles or flags, diamond patterns often precede strong directional moves—especially after periods of consolidation.
Strong Demand Signals from U.S. Markets
Underpinning the optimism is growing evidence of sustained buying pressure, particularly from U.S.-based exchanges. Daan Crypto Trades pointed to a consistent Coinbase spot premium—a metric that compares Bitcoin’s price on Coinbase to global averages—as proof of robust domestic demand.
When Bitcoin trades at a premium on U.S. platforms like Coinbase, it typically indicates strong local buying interest—often driven by institutional inflows or retail FOMO (fear of missing out). This dynamic has historically preceded major rallies.
Moreover, the return of Bitcoin above six figures has restored confidence among investors who were sidelined during April’s dip toward $75,000. That decline—a reaction to macroeconomic uncertainty and ETF outflows—was quickly reversed, showcasing resilience in the underlying market structure.
Resistance Looms: Can BTC Outperform Traditional Markets?
Despite the bullish momentum, some traders remain cautious. CrypNuevo noted that Bitcoin has yet to convincingly break through key resistance levels, suggesting a possible short-term pullback before any sustained rally.
“Slow week and Bitcoin hasn't been able to break resistance so far, which still makes me think that this scenario might be possibly in play.”
Additionally, Daan Crypto Trades observed that Bitcoin has underperformed relative to traditional stock markets in recent sessions. A tweet from May 17 highlighted this divergence:
“$BTC has failed to push higher relative to stocks. The recent relative weakness has come after the US has made a ‘Deal’ with China.”
This observation underscores an evolving narrative: Bitcoin may no longer act purely as a speculative asset but increasingly as a macro hedge—gaining strength when global uncertainty rises and capital seeks alternatives.
Thus, while current conditions may suppress short-term gains, any geopolitical tension or financial instability could quickly reignite demand for Bitcoin as a store of value.
Possible Scenarios for BTC Price Action
Looking ahead, several paths are plausible:
- Bullish Breakout: A decisive close above $105,000 could open the door to $110,000–$116,000 within days.
- Pullback First: A retest of support near $98,000–$99,000 might occur before resuming upward.
- Range Extension: Failure to break out could trap BTC in a wider $95,000–$105,000 range for another week or more.
- Sweep-and-Rise: Some analysts warn of a potential "liquidity sweep" down to $90,000–$92,000 to trigger stop-losses before a powerful rebound.
Historically, such sweeps often precede major rallies—making them dangerous for leveraged traders but rewarding for patient investors.
👉 Learn how smart traders use volatility to their advantage during market transitions.
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Frequently Asked Questions (FAQ)
What is the next target for Bitcoin price?
Many traders are eyeing **$116,000** as a near-term target, especially if Bitcoin breaks above $105,000 with strong volume. This level represents a new all-time high and aligns with technical patterns suggesting an imminent breakout.
Is Bitcoin likely to drop before rising?
Yes, some analysts expect a brief dip—possibly down to $98,000 or even $90,000—to sweep liquidity before continuing higher. These pullbacks are common before major rallies and can offer strategic entry points.
What causes low volatility in Bitcoin?
Low volatility often occurs during consolidation phases when traders are uncertain about direction. It typically builds pressure for a future breakout—either up or down—especially when accompanied by declining volume.
How reliable is the triangle pattern for BTC?
The converging triangle is one of the most reliable continuation patterns in technical analysis. When paired with low volume and tight price ranges—as seen currently—it increases the probability of a strong breakout.
Why is the Coinbase spot premium important?
A premium on Coinbase indicates stronger demand from U.S. buyers, often linked to institutional activity or regulatory clarity. It’s considered a bullish signal because it reflects real buying pressure rather than just speculative futures trading.
Can Bitcoin outperform stocks in 2025?
While Bitcoin has recently lagged behind equities, its long-term appeal lies in its role as a hedge against macro risks. If global tensions rise or inflation rebounds, BTC could outperform traditional assets significantly.
Final Outlook: Patience Before the Surge
Bitcoin’s current phase of tight consolidation should not be mistaken for weakness. Instead, it reflects maturation—a market preparing for its next major move. Whether it arrives via a clean breakout or a deceptive sweep first, the path toward $116,000 appears increasingly viable.
Traders should monitor volume shifts, exchange-specific premiums, and macro developments closely. More importantly, risk management remains essential—especially with leveraged positions vulnerable to sudden swings.
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While no one can predict the future with certainty, the confluence of technical signals and growing demand suggests that Bitcoin’s bull run may be far from over. As always, conduct thorough research and make informed decisions based on your own risk tolerance and investment goals.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk.