Bitcoin’s Bullish Breakout Sparks Hopes of a Price Surge — But Is a Crash to $70K Looming?

The cryptocurrency market is rising with speculation after Bitcoin (BTC) closed its highest-ever weekly candle on Sunday, signaling strong bullish momentum that has traders eagerly watching for an imminent price surge. But beneath the optimism, a well-known analyst warns of a potential collapse to as low as $70,000 — leaving investors torn between excitement and caution.

Bitcoin Reclaims Bull Flag — Eyes Set on New Highs

Bitcoin’s recent price action has reignited bullish hopes across the market. After weeks of consolidation, BTC has broken above the upper trendline of its widely-watched bull flag pattern — a technical formation that often precedes explosive upward moves.

At the time of writing, Bitcoin is trading above $108,000, hovering comfortably around its bullish breakout zone. The weekly close above the bull flag, coupled with bullish signals from the Stochastic RSI on both the weekly and two-week timeframes, suggests that Bitcoin may be on the verge of a significant upward rally.

Technical analysts point to the possibility of BTC retesting the top of the bull flag around $108,800 before a potential surge. As long as the price holds this level and remains above the ascending trendline, the bullish setup remains intact.

Adding fuel to the fire is the recent passage of President Trump’s $5 trillion “Big Beautiful Bill” in the U.S., which is expected to inject massive liquidity into the markets — a move reminiscent of the pandemic-era stimulus packages that sent Bitcoin to new heights.

Capo of Crypto: The Calm Before the Storm?

Despite the optimism, not everyone is convinced the rally will continue unchecked. The prominent trader known as Capo of Crypto has issued stark warnings about a looming market collapse. According to his analysis, Bitcoin’s inability to significantly rise despite aggressive institutional buying raises red flags.

“Something doesn’t add up,” Capo remarked, pointing to what he believes are signs of silent selling by large investors. He further noted concerning market behavior, such as the reactivation of dormant Bitcoin wallets from the early “Satoshi” era. Over 80,000 BTC — worth approximately $8.7 billion — were recently moved after 14 years of dormancy, which Capo interprets as potential distribution rather than accumulation.

In his bearish scenario, if Bitcoin loses the critical $100,000 support level, the price could quickly tumble to the $92,000-$93,000 range, with the possibility of sinking even lower to between $60,000 and $70,000. Altcoins, which have already suffered declines of up to 50% from their May peaks, could see even steeper losses — some potentially collapsing by another 80%.

Geopolitical Tensions Add to Market Uncertainty

Further clouding the market outlook are rising geopolitical tensions between China and Taiwan. With Taiwan being a key player in global semiconductor production, any disruptions could send shockwaves through financial markets, including cryptocurrencies.

While Bitcoin currently boasts a market capitalization of approximately $2.16 trillion and trades near its all-time highs, Capo of Crypto cautions that these impressive figures may not withstand the combined pressure of macroeconomic risks and hidden selling activity.

The Road Ahead: Surge or Slide?

The stage is set for a pivotal moment in Bitcoin’s price trajectory. Bulls argue that strong technicals, increased liquidity, and historical patterns support the case for a sharp breakout toward new highs. Bears, meanwhile, warn that lurking market risks and hidden distribution could trigger a swift reversal.

For now, traders and investors alike are urged to exercise caution, closely monitor key support levels, and prepare for heightened volatility — whichever direction Bitcoin decides to take.