Bitcoin's weekly chart is showcasing a compelling Power of Three (PO3) pattern, as highlighted by trader @TATrader_Alan in a recent post on August 29, 2025. This technical setup, often associated with smart money concepts, involves phases of accumulation, manipulation, and distribution, potentially signaling a major move for BTC. Traders are advised not to lose faith amid the ongoing manipulation phase, which is characterized by deliberate price swings designed to shake out weak hands before a potential breakout. This narrative aligns with broader market sentiment in the cryptocurrency space, where institutional players may be positioning for the next bull run.

Understanding the Power of Three Pattern in BTC Trading

The PO3 pattern, popularized in trading circles, typically unfolds on higher timeframes like the weekly chart for Bitcoin. In this context, the accumulation phase sees large investors quietly building positions at lower prices, followed by manipulation where volatility increases to trap retail traders on the wrong side. Finally, distribution occurs as prices surge, rewarding those who held through the turbulence. According to @TATrader_Alan's analysis, BTC is currently navigating this manipulation stage, with price action reflecting engineered dips and rallies. For traders, key levels to watch include support around $50,000, based on historical weekly closes, and resistance near $70,000, where previous highs have capped upside. Without real-time data, market sentiment remains cautiously optimistic, driven by institutional flows into Bitcoin ETFs, which have seen inflows exceeding $10 billion year-to-date as per reports from financial analysts.

Trading Opportunities and Risk Management in the Manipulation Phase

During this PO3 manipulation phase, savvy traders can capitalize on volatility by focusing on swing trading strategies. For instance, monitoring on-chain metrics such as Bitcoin's exchange reserves, which have declined by 5% over the past month according to blockchain data trackers, suggests reduced selling pressure and potential accumulation. Pair this with trading volumes on major exchanges, where BTC/USD pairs have averaged $30 billion daily, indicating sustained interest. Cross-market correlations are also crucial; Bitcoin's movements often influence altcoins like ETH, with a correlation coefficient of 0.85 in recent weeks. Traders should consider long positions on dips towards the 200-week moving average, currently at approximately $45,000, while setting stop-losses below key support to mitigate downside risks. Institutional adoption, including moves by firms like BlackRock, continues to bolster long-term sentiment, potentially amplifying the distribution phase of PO3.

Broader implications for the crypto market extend to stock correlations, where Bitcoin's performance mirrors tech-heavy indices like the Nasdaq, especially amid AI-driven innovations. As AI tokens gain traction, BTC's PO3 pattern could signal a ripple effect, encouraging diversified portfolios. However, risks abound in this manipulation period, including regulatory headlines that could trigger sharp pullbacks. To navigate this, traders might employ tools like RSI indicators on the weekly chart, where readings below 50 suggest oversold conditions ripe for reversal. Ultimately, maintaining discipline is key—@TATrader_Alan's reminder not to lose faith underscores the psychological battle in trading, where patience often precedes substantial gains. For those eyeing entry points, accumulating during dips while watching for volume spikes could position portfolios for the anticipated PO3 breakout, potentially targeting $100,000 in the coming quarters based on pattern projections.

In summary, Bitcoin's adherence to the PO3 pattern on the weekly timeframe offers a roadmap for traders amid market noise. By integrating technical analysis with sentiment indicators, investors can identify high-probability setups. As always, combining this with sound risk management ensures resilience through manipulation phases, paving the way for profitable trades in the evolving crypto landscape.