Bitcoin: Are We Facing a Pullback or the Next Bullish Breakout?

As Bitcoin continues its volatile journey, analysts are divided on whether the cryptocurrency is primed for a pullback or on the verge of a major breakout. Crypto analyst Justin Bennett has identified key technical patterns suggesting Bitcoin could retrace to around $63,000. Bennett warned of a potential rising wedge and bearish divergence, which could pose significant risks to leveraged traders. Additionally, he noted that the recent rally was largely driven by the perpetual market, raising doubts about the sustainability of the breakout, especially as open interest nears previous highs.

Echoing these concerns, CrediBULL Crypto pointed out that open interest has surpassed levels seen before Bitcoin’s drop from $70,000 to $49,000, signaling the possibility of a correction down to $50,000 before the cryptocurrency pushes towards $73,000.

Despite these cautionary signals, other experts maintain a more optimistic outlook. Matt Hougan, for instance, believes Bitcoin could reach a new all-time high before the upcoming U.S. election, while CryptoCon forecasts a major bull run that could drive the digital asset to $120,000 by next year. Similarly, Jamie Coutts from Real Vision predicts Bitcoin reaching $110,000 by mid-2025, citing increasing global liquidity as a driving factor.

With mixed signals from the market, Bitcoin’s next major move remains uncertain. Whether a pullback or a bullish breakout lies ahead, the coming months will be critical in shaping the asset's trajectory.