Bitcoin Technicals Scream: Price Explosion Imminent as Charts Flash Bullish Signals

Forget the noise—the charts are talking. And right now, they're shouting one thing: Bitcoin is coiled for a major move.

The Setup on the Screen

Key technical indicators have shifted into a configuration not seen in months. A decisive breakout above a critical resistance level has traders scrambling, while on-chain metrics whisper about accumulation happening beneath the surface. The classic patterns—the ones that have preceded every major leg up—are forming with textbook precision.

Volume Tells the Real Story

It's not just price action. Surging volume confirms the breakout isn't a fake-out. This is institutional-grade buying, the kind that sustains rallies and punishes latecomers. The market structure has shifted from distribution to outright accumulation, a fundamental change in character that often gets missed by analysts too busy watching CNBC.

What the Machines See

Algorithmic traders are leaning in. Momentum oscillators have crossed bullish, and key moving averages are aligning as support, not resistance. The technical landscape has cleared of major overhead sell walls, creating a runway. When these signals converge, history suggests ignoring them is a costly mistake—just ask the hedge fund managers who shorted the last cycle while complaining about 'market irrationality.'

The fuse is lit. All that's left is the explosion.

In brief

• Bitcoin begins 2026 at $87,500, in an apparent calm that could mask strong volatility to come.
• Several rare technical signals, including a bullish RSI divergence and a historic compression of Bollinger bands, catch analysts’ attention.
• At the same time, Bitcoin’s 4-year cycle theory is challenged by major figures in the sector.
• Influential voices believe Bitcoin is entering a new market phase, less cyclical, more influenced by traditional finance.

Technical signals announce a possible surge in volatility

While some experts anticipate a historic Bull Run in 2026, others observe an unusual alignment of indicators suggesting strong volatility ahead.

On X (formerly Twitter), trader Jelle notably highlighted : “new year, new start. We have a confirmed bullish divergence on the 3-day time frame, right at the level of a key support”. He refers here to a bullish divergence on the RSI (Relative Strength Index) on a three-day timeframe, generally interpreted as an early signal for a rise.

On his side, analyst Quantdata21 draws attention to another phenomenon : an extreme compression of the Bollinger bands. “There is only one other time when daily Bollinger bands were this tight, with a weekly RSI below 40. It was in January 2023, and everyone remembers what happened to bitcoin afterwards”, he writes, recalling the price surge at that time.

The following elements contribute to fueling the hypothesis of an imminent breakou t:

• A bullish RSI divergence on three days, detected while BTC tests a key support ;

• A weekly RSI below 40, a level rarely reached in a price compression context ;

• A record compression of the Bollinger bands, with bandwidth as low as in January 2023, a period that preceded a strong bullish surge ;

• A context of the return of traditional markets (TradFi) after the year-end truce, which could catalyze sudden movements.

For experienced technical analysts, the coincidence of these indicators constitutes fertile ground for a phase of increased volatility. Even if the direction of the movement remains to be confirmed, the momentum seems to lean towards the bullish side in the short term, according to several market participants.

Towards the end of the 4-year cycle : a new era for bitcoin ?

Alongside technical analysis, another discussion is gaining intensity within the cryptosphere: the challenge to bitcoin’s famous four-year cycle.

On December 31st, the well-known entrepreneur and maximalist Simon Dixon, founder of Bnk To The Future, declared on X : “goodbye to the 4-year Bitcoin cycle”, stating that 2026 WOULD mark the beginning of a “new era” for BTC.

This statement echoes a reality: for the first time since the implementation of the post-halving model, bitcoin closed an entire year in the red after a halving, a situation that calls into question the robustness of the cyclical model used for over ten years.

This break is partly explained by the structural transformation of the market. The massive arrival of institutional capital, new investment vehicles (ETFs, regulated derivatives), and the growing financialization of the ecosystem seem to dilute the influence of historical events like the halvings.

In this context, some analysts, like Michaël van de Poppe, prefer to bet on more contemporary market dynamics. He believes that the recent growth in bitcoin accessibility could be enough to propel the price towards “$90,000 in the coming weeks”.

While technical signals accumulate and historical landmarks falter, bitcoin’s future seems to open on unprecedented ground. In this uncertain context, Mow predicts a historic bullish decade for bitcoin, a prospect which, if confirmed, would sustainably redefine investment strategies in the crypto ecosystem.

Maximize your Cointribune experience with our "Read to Earn" program! For every article you read, earn points and access exclusive rewards. Sign up now and start earning benefits.