Bitcoin’s Breakout: Three Reasons It’s Trending Toward $107K

Bitcoin is on the verge of a significant rally, potentially reclaiming a crucial support level of $100,000. Analysts predict it could ascend toward $107,000, driven by a combination of favorable technical indicators and shifting market dynamics.

Key Factors Driving Bitcoin’s Breakout

Several elements are contributing to Bitcoin’s bullish momentum:

• Strong Technical Indicators: Bitcoin has recently broken out from a multi-week ascending triangle pattern, a sign of strength in the current market.
• Reduced Selling Pressure: Long-term holders are exhibiting diminished selling behaviors, suggesting a shift towards accumulation rather than distribution.
• Positive Macroeconomic Signals: An increase in global liquidity and a negative correlation with gold are also enhancing Bitcoin’s appeal.

Breakout from Ascending Triangle

This week, Bitcoin confirmed its breakout from a key ascending triangle pattern situated around $95,000. Following this breakthrough, the cryptocurrency experienced a retracement to retest the prior resistance as a new support level. Such a movement is characteristic of authentic breakouts, reinforcing the underlying structural integrity of the price action. Maintaining this level is essential for sustaining the upward trajectory toward the estimated target of $107,000 by February.

Moreover, Bitcoin’s daily chart highlights an upcoming potential bullish crossover between the 20-day and 50-day exponential moving averages (EMAs). Historically, similar crossovers have led to price increases of approximately 17% in the subsequent month, bolstering the case for continued positive momentum.

Long-term Holders Reducing Selling

Another promising sign is the reduced selling pressure from long-term Bitcoin holders, often referred to as “OGs.” Data indicate that the rate of coins spent by holders with more than five years of inactivity is declining significantly. Once peaking at around 2,300 BTC earlier in the year, the 90-day average of spent outputs has decreased to about 1,000 BTC. This trend indicates fewer coins flooding the market.

According to analyst DarkFrost, the slowdown in OG selling could foster a more bullish environment. As the selling pressure wanes, the trend appears increasingly weighted towards accumulation.

Macro Signals Favoring Bitcoin

The correlation between Bitcoin and gold offers an additional bullish indicator. Historically, shifts to negative correlation have preceded significant Bitcoin rallies, averaging a 56% price increase within two months. Despite a notable exception in May 2021, current market conditions suggest a favorable setup for potential price appreciation.

As of 2026, macroeconomic factors such as rising global liquidity are in play. Bitwise’s Matt Hougan notes the correlation between Bitcoin bull markets and expansive global M2 supply, indicating that the ongoing monetary easing could position Bitcoin to outperform gold significantly in the coming years.

In conclusion, a combination of technical advancements, reduced selling pressure, and supportive macroeconomic factors suggest a bright future for Bitcoin. The outlook remains optimistic, especially as it trends toward the pivotal $107,000 benchmark.