The Bitcoin bull market continues to build momentum, with analysts identifying a rare breakout opportunity that mirrors the price action of gold. This could offer a glimpse into Bitcoin’s next price movement, especially as a major short squeeze unfolds. At the time of writing, Bitcoin is trading above the $85k price level.
Bitcoin’s Bullish Move and Cup-and-Handle Formation
According to analyst Josh of Crypto World, the weekly Bitcoin chart shows that Bitcoin’s price is maintaining its bullish trend, a movement that has been expected for some time. A key development is the confirmation of a breakout above the $73,000 to $74,000 resistance level. This is a significant signal on the weekly chart, indicating strong bullish potential for Bitcoin in the long term.
What’s intriguing is the comparison between Bitcoin’s current price action and the recent breakout in the price of gold. Both assets are showing a similar pattern—specifically a large “cup and handle” formation, which historically signals a powerful move once the resistance level is broken.
Gold’s recent breakout saw a 40% rise, which, if mirrored by Bitcoin, would push its price above $100,000. However, given Bitcoin’s faster movement compared to gold, a larger-than-40% increase is expected, with some analysts predicting a price target as high as $126,000.
Short Squeeze Driving Bitcoin Higher
A major short squeeze is contributing to Bitcoin’s rally. The liquidation of short positions is pushing the price even higher, and this pattern has been ongoing for the past several weeks. Bitcoin’s movement above the $80,000 mark was followed by the targeting of higher resistance levels, with an $89,000 price target currently in focus. If the $86,000 level is surpassed, the next key milestone would be $90,000, with $100,000 now within reach.
