Technical analysis indicates Bitcoin’s Power of 3 chart pattern could propel prices toward $126,000 following a significant $922 million liquidation event. The three-phase pattern—comprising Accumulation, Manipulation, and Distribution—requires Bitcoin to reclaim critical support levels to validate this bullish projection.
The leveraged position reset saw Bitcoin futures open interest plummet from $88 billion to $79 billion. Historical data suggests such sharp reductions often precede bullish momentum as excess speculation clears from the market.
For bullish confirmation, Bitcoin must convert key resistance levels at $115,300, $116,800, and $120,000 into firm support. This structural transformation is essential to unlock the projected $126,000 price objective.
Negative funding rates observed on Binance, BitMEX, and Deribit signal pervasive market caution. This bearish positioning may paradoxically fuel recovery as traders cover short positions during upside movement.
Bitcoin recently absorbed a fair value gap spanning $112,000 to $115,200—an area aligning with its prior all-time high. This consolidation provides technical groundwork for potential upward trajectory.