Bitcoin’s (BTC USD) recent price movements have captured the attention of analysts and investors, with projections of a significant rally on the horizon.
Crypto analyst CryptoJelleNL has highlighted a Cup and Handle pattern on Bitcoin’s chart. The chart portrays a bullish continuation setup with a target of $140,000.
This pattern, combined with strong technical indicators, suggests Bitcoin could achieve this milestone by the end of Q1 2025.
Price of Bitcoin (BTC USD): The Cup and Handle Pattern
The Cup and Handle pattern seen in the Bitcoin trading chart is a clear indication of a bullish continuation signal.
The cup part of the pattern shows that the bottom of the pattern is rounded which symbolizes an extended period of accumulation after the 2021 market peak.
This phase continued until the end of 2023 with the price of Bitcoin breaking the resistance level at $65,000 to indicate further price rise.
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The “handle” section emerged shortly after and was followed by a brief period of trading within a descending channel. This pull back provided some consolidation to earlier gains hence creating a platform for the next rally.
This was followed by a breakthrough of the handle’s resistance. This makes the pattern valid and indicates the further increase of the prices.
According to the standard Cup and Handle pattern, the technical target for Bitcoin (BTC USD) can be estimated at $140,000. This is in line with CryptoJelleNL’s bullish approach.
Key Support and Resistance Levels
The current price action of Bitcoin is anchored on strategic support and resistance levels that will set the price towards $140,000.
The area between $65,000 and $68,000 has become the breakout level. This means that if the price falls below it, there will be further support against the bears.
These levels were the former resistance levels of the cup pattern that has now become the support. On the positive side, Bitcoin is currently having resistance at $98,000.
This has become a coveted level in the trading market. The $100,000 level remains a critical price point in this regard.
If Bitcoin can break back through this level, then the buying frenzy could be revived and the stage could be set for a test of the all-time highs again.
Continued price growth above the $100,000 level would strengthen the Cup and Handle pattern, opening the way for Bitcoin to achieve its predicted price of $140,000.
Price of Bitcoin Market Opinion and Analysis
Sentiment regarding the BTC market is still somewhat positive, while fundamentally and technically driven aspects back this prediction.
The above breakout has been confirmed by increasing trading volume in the handle area which is the final confirmation of correctness of the move.
The Relative Strength Index (RSI) is currently at 50.83, which is just above the midpoint, indicating neutrality. This is a neutral area, which means that the RSI can grow further if it will be above 60.
Furthermore, there is a Golden Cross that means the 13-day moving average has cut through 49-day moving averages from top side which supports the bulls.
This signal is widely considered as a preliminary indication of the future rise in price, which supports the further increase in prices.
Potential Scenarios for Bitcoin’s Price Action
Whether Bitcoin will be able to reach the $140000 mark will depend on the ability to overcome important resistance levels.
In the bullish case, a successful breakout above $98,000 would lead to a move towards $100,000. Breaching this psychological level might pave the way for a further increase in buying pressure, which could take Bitcoin to $120,000 and then to $140,000.
On the flip side, if bulls failed to defend $68,000, this would put a question mark over the ongoing Cup and Handle formation. This could open up a more severe retracement which will see Bitcoin down to $50k.
Nevertheless, at the moment we are witnessing a powerful breakout, and the general positive sentiment on the market seems to make the bearish scenario less probable.
Bitcoin’s Broader Market Impact
This bullish story of Bitcoin(BTC USD) is not only confined to the technicals. Financial advisors like Robert Kiyosaki, have continued to endorse Bitcoin as an investment asset.
He listed Bitcoin, alongside gold and houses as the significant investment opportunities.
Kiyosaki also ignored Buffett and Munger criticism because, in his view, it is crucial for a person to know what he is investing in.
It is his bullishness on Bitcoin that shows the cryptocurrency is slowly being accepted as a long-term store of value. Bitcoin (BTC USD) is now at $96,606.14 and has jumped 2.13% in the last 24 hours.
