Bitcoin’s Power of 3 Pattern Suggests Possible $126,000 Target Pending Key Resistance Break

Key Points

1. Bitcoin's Power of 3 pattern consists of Accumulation, Manipulation, and Distribution phases, targeting $126,000 if key support levels are reclaimed.

2. A $922 million liquidation event reset leveraged positions, reducing Bitcoin futures open interest from $88 billion to $79 billion, historically a bullish signal.

3. Key resistance levels at $115,300, $116,800, and $120,000 must be cleared to confirm a bullish trend and unlock the $126,000 target.

4. Negative funding rates on major platforms like Binance, BitMEX, and Deribit indicate a market bias that could favor price recovery.

5. Bitcoin absorbed a fair value gap between $112,000 and $115,200, coinciding with the previous all-time high, supporting potential upward movement.