In the dynamic world of cryptocurrency trading, Bitcoin (BTC) continues to captivate traders with its intricate price patterns and potential for significant movements. According to trader Cas Abbé, the Power-of-3 pattern is actively in play for BTC, signaling a shift from accumulation to capitulation, with an expansion phase on the horizon. This analysis, shared on August 30, 2025, highlights that the accumulation phase has concluded, and the ongoing capitulation phase could pave the way for explosive growth if BTC achieves a weekly close above $112.5K. Traders eyeing Bitcoin price predictions should note this key resistance level, as it could trigger the expansion phase, potentially starting by the end of Q3 or the beginning of Q4 2025. This pattern underscores the importance of monitoring BTC/USD trading pairs for breakout signals, where historical data shows similar setups leading to substantial rallies.

Understanding the Power-of-3 Pattern in BTC Trading

The Power-of-3 pattern, a technical framework often used in cryptocurrency markets, divides price action into three distinct phases: accumulation, capitulation, and expansion. In BTC's case, the accumulation phase involved steady buying at lower levels, building a base for future gains. Now, with capitulation underway, we're seeing increased selling pressure that could flush out weak hands, setting the stage for a reversal. Cas Abbé's insight points to $112.5K as the critical weekly close threshold, acting as a major resistance level. From a trading perspective, this aligns with on-chain metrics like rising transaction volumes and whale accumulations observed in recent months. For instance, if we look at BTC's price history, similar patterns in 2021 led to a surge from $30K to over $60K within quarters. Traders should watch support levels around $90K to $100K, where buying interest might intensify during capitulation. Incorporating indicators such as RSI and MACD, current readings suggest oversold conditions, hinting at a potential bottom formation. This setup offers trading opportunities in BTC perpetual futures on exchanges, where leveraging long positions above $112.5K could yield high returns, but risk management is crucial amid volatility.

Market Sentiment and Institutional Flows Impacting BTC

Beyond the pattern, broader market sentiment plays a pivotal role in BTC's trajectory. Institutional flows, including inflows into Bitcoin ETFs, have been robust, with reports indicating billions in net purchases over the past year. This institutional backing could accelerate the expansion phase once capitulation ends, driving BTC towards new all-time highs. Trading volumes across major pairs like BTC/USDT have shown spikes during capitulation dips, often preceding recoveries. For example, in the last quarter, average daily volumes exceeded 50 billion USD, correlating with price consolidations. Traders analyzing Bitcoin market analysis should consider cross-market correlations, such as BTC's response to stock market trends; a bullish equities environment could bolster crypto sentiment. On-chain data from sources like Glassnode reveals increasing active addresses and hash rate stability, supporting the narrative of an impending expansion. If the expansion begins by Q4 2025, projections estimate BTC could target $150K to $200K, based on Fibonacci extensions from previous cycles. However, external factors like regulatory news or macroeconomic shifts could delay this, emphasizing the need for stop-loss orders at key support zones.

To capitalize on this Power-of-3 pattern, traders might explore strategies like swing trading around the $112.5K level or scalping during capitulation volatility. Pairing BTC with altcoins could also amplify gains, as historical data shows altcoin rallies following BTC breakouts. Overall, this phase transition presents a compelling case for patient accumulation, with the potential for significant upside. As we approach the end of Q3 2025, keeping an eye on weekly closes will be essential for confirming the shift to expansion and unlocking new trading opportunities in the cryptocurrency landscape.