Bitcoin Is Racing Toward $89K. Drew Dosek Would Rather See It Stop There First

Bitcoin has staged a strong recovery from its lows, and the rally is now getting close to the level that matters most.

Near $89,363 sits the rising neckline of the head-and-shoulders pattern that Bitcoin broke on its weekly chart. Drew Dosek sees that retest as the next major decision point. His preferred bullish outcome isn't an immediate breakout. He would rather see Bitcoin reach the neckline, pause and build a base.

That distinction matters because Bitcoin has rallied almost directly off its lows. Price may react at $89,363. If it can absorb that reaction while holding the $80,524 support below, a consolidation would preserve the recovery and give Bitcoin time to build momentum for another attempt at the neckline.

The rally matters. What Bitcoin does when it reaches resistance matters more.

Bitcoin Never Completed the Bearish Pattern

The backdrop is a large head-and-shoulders pattern on Bitcoin's weekly chart. The left shoulder, head and right shoulder formed around a rising neckline that eventually broke to the downside.

That breakdown produced a measured-move projection near $37,000.

Bitcoin never got close.

Instead, price reached the bottom of a longer-term parallel channel and spent roughly a month and a half around that support before turning higher. That channel kept the decline from turning into the much larger move the head-and-shoulders pattern implied.

Now Bitcoin is heading back toward the neckline it broke, and it is coming almost straight off its recent lows. That makes the reaction at the neckline more important than simply touching it.

The Bullish Case Doesn't Require an Immediate Breakout

Two levels define Drew's Bitcoin framework:

• $89,363 is the test.
• $80,524 is the support that gives Bitcoin room to work.

Drew notes that when price rallies straight off the lows into a key neckline, a fade in that area is common. He would be surprised, though, to see Bitcoin hit the neckline and then break below the horizontal support near $80,524.

That creates a fairly wide consolidation zone between roughly $80,500 and $89,400. If Bitcoin spends time inside that range, it wouldn't damage the bullish recovery. In Drew's view, it could strengthen it.

There are two possible paths. Bitcoin could break the neckline on the first attempt, or it could consolidate first and then make a healthier push higher. Drew leans toward the second, because he believes it gives Bitcoin a better chance of keeping its gains.

If Bitcoin eventually gets back above the neckline, the chart opens up considerably. In that scenario, Drew sees price pushing through $100,000, with the next resistance near $105,000.

The order of events is what matters: rally into resistance, hold the underlying support, build momentum, then attempt the breakout.

Ethereum Has Its Own $3,000 Test

Ethereum is following a similar roadmap, although it doesn't have Bitcoin's head-and-shoulders neckline.

Its key longer-term structure is a parallel channel dating back to June 2022. Ethereum broke beneath the bottom of that channel near $1,800, tried to reclaim it and was rejected toward $1,500 before recovering.

The next major test sits just above $3,000. Drew identifies $3,041.67 as resistance because it marks the high of the weekly candle from the week of January 26, and it also lines up with a rising trend line. With two technical references meeting in roughly the same area, he expects significant resistance there.

Before Ethereum gets there, Drew wants to see price hold and consolidate above the $2,400 area, the level of the red weekly candle from September 7. Doing so would let Ethereum build the momentum to attack $3,000.

If Ethereum breaks through that resistance and consolidates above it, Drew's next reference is about $3,600, the midpoint of the longer-term parallel channel.

Bitcoin and Ethereum share the same broader question: can each one hold its recovery long enough to build momentum before challenging major overhead resistance?

HYPE Shows What Strong Momentum Looks Like

HYPE provides the contrast.

Unlike Bitcoin and Ethereum, HYPE has already broken through a major declining trend line drawn from its previous all-time highs in June. It never came back to retest that line. Instead, price pushed into the upper half of a rising parallel channel and has largely stayed there.

The level that controls Drew's near-term read is the channel midpoint near $89.14. HYPE briefly slipped beneath it and quickly recovered, and a later dip found support at the midpoint again.

The warning sign would be consecutive daily closes below $89.14, with price continuing to slide. That would shift attention toward the lower half of the channel and potential support near $78.17.

On the upside, the all-time high is the immediate resistance. If HYPE breaks through it, the upper boundary of the channel near $110.52 becomes the next target.

HYPE is the momentum chart of the group. Bitcoin and Ethereum are approaching tests, while HYPE shows what sustained strength after a breakout can look like.

Zcash May Need More Time

Zcash is at a very different stage of its setup.

It spent time inside a relatively ordinary sideways channel, then accelerated sharply higher. Drew compares the move to how many tech stocks, especially the memory names, broke out earlier in the year. He drew a steeper secondary parallel channel to capture that momentum, and price recently broke beneath its lower boundary.

The reaction after that breakdown is what Drew is watching now. Zcash tested the bottom of the broken channel the very next day and has since formed a bear flag sitting right on top of prior pivot highs.

His preferred setup isn't an immediate move. Drew would like to see the flag keep developing for roughly another seven to eight days, similar in length to the earlier bull flag on the chart. If the bear flag eventually resolves lower, Drew sees the top of the older parallel channel near $1,047 as the next support area, where he would watch for another bounce.

That makes Zcash the least mature setup of the four. Its pattern is still forming.

Bitcoin, Ethereum, HYPE and Zcash: Key Levels to Watch

Bitcoin remains the directional anchor.

A reaction at $89,363 wouldn't automatically undermine the recovery. Drew's preferred bullish path actually allows Bitcoin to stall there, as long as the pullback or consolidation keeps respecting $80,524.

Ethereum has a similar job between $2,400 and $3,041.67. For HYPE, the $89.14 channel midpoint gives the clearest read on whether its momentum is intact. Zcash needs more time for its bear flag to develop.

The four charts aren't all bullish or bearish at the same time. They are at different stages of their structures. Bitcoin is approaching the test, Ethereum is building toward one, HYPE has already broken out and is trying to hold its momentum, and Zcash is still developing its pattern.

For Bitcoin especially, the next signal may come from whether it can pause at resistance before trying again.