3 Charts Predicting Bitcoin Rally To $100K Despite Trump Dump

Bitcoin (BTC) has declined by 11.26% week-to-date and was trading for $83,600 as of March 4. The cryptocurrency’s losses have surfaced primarily due to US President Donald Trump’s escalating trade war with China, Canada, and Mexico.

Still, the cryptocurrency is showing signs of a major price reversal in the coming weeks, primarily due to signs from spot and on-chain data predicting a rally toward at least $100,000.

Let’s examine these factors in detail.

Bitcoin Bullish Reversal Pattern in Play Despite Latest Dips

Bitcoin’s price action is exhibiting a textbook head-and-shoulders pattern, coupled with a parabolic curve breakout, suggesting a significant bullish trajectory.

Notably, the latest analysis from Marzell Crypto highlights a crucial neckline retest, which, if confirmed, could pave the way for a rapid ascent toward the $340,000 mark.

The chart follows a step-like parabolic formation, with Bases 1 through 4 marking progressive consolidation zones before price expansions. According to historical patterns, this setup often results in an explosive move, with the potential for Bitcoin to double in value within a short timeframe.

A key observation in the chart is the validation of the neckline retest, which aligns with the structure of a highly bullish reversal. The projected price target of $340,000 coincides with the 161.8% Fibonacci extension level.

Bitcoin’s Rotation From Retail to Whales Indicates Rebound to $100K Next

Bitcoin is undergoing a major ownership shift, with retail investors reducing their holdings. In contrast, large investors and ETFs are accumulating aggressively, which could propel BTC toward the highly anticipated $100,000 mark.

Data from CryptoQuant reveals a declining retail presence (blue line) alongside consistent accumulation by large investors (pink line). This transfer of Bitcoin from smaller holders to institutional hands has historically preceded major price surges, as institutions tend to buy and hold rather than engage in frequent trading.

The trend mirrors previous bull cycles, where institutional demand drove long-term price appreciation.

With spot Bitcoin ETFs attracting billions in inflows and major firms increasing their exposure, supply is tightening. If retail capitulation continues, Bitcoin’s illiquid supply could rise, setting the stage for a supply squeeze that accelerates price gains.

Furthermore, Bitcoin’s halving event in April 2024 has already reduced the rate of new BTC issuance. Combined with rising institutional demand, this supply shock effect strengthens the case for Bitcoin surpassing $100,000 in the coming months.

Dollar Correlation Points to Massive Bitcoin Bull Run

The U.S. Dollar Index (DXY) appears to be repeating a historical fakeout pattern, which has previously led to sharp reversals and prolonged downtrends—a setup that has historically fueled major crypto bull runs.

According to analysis from Crypto Batman, the DXY’s recent breakout above key resistance mirrors similar moves in 2016 and 2020, both of which resulted in fakeouts followed by sustained declines.

In both cases, the weakening dollar coincided with massive rallies in risk assets, particularly Bitcoin and the broader crypto market.

The chart suggests that after failing to sustain its breakout, the DXY is poised for another downturn, aligning with a historical pattern of crypto-friendly macro conditions.

A declining dollar typically boosts Bitcoin and other digital assets, as investors seek alternative stores of value amid fiat devaluation concerns.

If the DXY repeats its past behavior, Bitcoin could enter a parabolic phase, supported by the recent influx of institutional capital through ETFs, the post-halving supply squeeze, and rising demand for hard assets.

The narrative of “Fiat drops, BTC runs” may once again play out, signaling the potential for a major crypto rally in the coming months.