U. Today – All eyes are on price to see if it will confirm the textbook pattern shown on its chart and, in the process, hit a new record high.
Ali, a crypto analyst, identified a historical cup and holding pattern on the Bitcoin price chart. This technical formation, which is often seen as a bullish indicator, shows that Bitcoin may be at the point of a significant price increase.
According to Ali, Bitcoin's breakout of this pattern indicates a potential target of $276,400. A cup and handle pattern consists of a “cup” shape, where the price gradually decreases and rises to form a cyclical low, followed by a “handle,” where the price briefly consolidates before breaking out at new highs.
The cup and handle pattern has appeared in Bitcoin's price history during previous bull runs, often preceded by significant uptrends. If confirmed, this current plan is fueling optimism for Bitcoin's price trajectory.
Similarly, in a recent post, CryptoQuant predicts that the price of Bitcoin may rise above $200,000 in 2025. It cites a potential $520 billion inflow, pro-crypto policies and a four-year bullish cycle as factors that can drive this view. According to CryptoQuant, Bitcoin's multiplier effect can cause an increase of $2-$6 in market value for every $1 that comes in.
Bitcoin price action
At the time of writing, BTC was up 1.13% in the last 24 hours to $103,358. Bitcoin reached $105,970 in Friday's session, extending its rebound from the lows of $95,900 on Jan. 13.
Following the big sell-off earlier in the week, cryptocurrencies have rallied as risk assets have increased sharply in response to comforting US inflation data, which has fueled expectations of a Federal Reserve interest rate cut in the near future.
Over the past 24 hours, gains in various crypto assets have been reversed, with many trading at a loss. In the last 24 hours, 477 million dollars worth of cryptocurrency positions were liquidated, according to CoinGlass data.
So far this year, Bitcoin has traded closely with stocks. It has been in consolidation mode since late December, when Federal Reserve Chairman Jerome Powell issued an inflation warning, which was later raised this week following two disappointing December numbers. Bitcoin ETFs have received over $1 billion in revenue in the past two days.