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The recent movements in the price of Bitcoin (BTC USD) have caught the attention of analysts and investors, with projections of a significant increase on the horizon.
Crypto analyst CryptoJelleNL highlighted the Cup and Handle pattern on the Bitcoin chart. The chart shows a bullish continuation setup with a target of $140,000.
This pattern, combined with strong technical indicators, suggests that Bitcoin could reach this milestone by the end of the first quarter of 2025.
Bitcoin Price (BTC USD): Cup and Handle Pattern
The cup and handle pattern seen on the Bitcoin trading chart is a clear indication of a bullish signal continuation.
The cup portion 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 indicating further price growth.
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The “handle” section appeared soon after, followed by a short period of trading within the descending channel. This pullback provided some consolidation to the earlier gains, thus creating a platform for the next rally.
This was followed by a breakthrough of the doorknob resistance. This makes the pattern valid and indicates further price increases.
According to the standard Cup and Handle pattern, the technical target for Bitcoin (BTC USD) can be estimated at USD 140,000. This is consistent with CryptoJelleNL’s bullish approach.
Key support and resistance levels
The current Bitcoin price is anchored at strategic support and resistance levels that will set the price towards $140,000.
The area between $65,000 and $68,000 has become a breakout level. This means that if the price falls below it, there will be further bearish support.
These levels were the previous resistance levels of the cup pattern which has now become support. On the positive side, Bitcoin currently has resistance at $98,000.
This has become the desired level in the trading market. The $100,000 level remains a critical price in this regard.
If Bitcoin manages to break this level, then the buying frenzy could revive and the stage could be set for a test of all-time highs once again.
A continued price rise above the $100,000 level would strengthen the Cup and Handle pattern, paving the way for Bitcoin to reach its projected price of $140,000.
Bitcoin Price Market Opinion and Analysis
Sentiment regarding the BTC market is still somewhat positive, while fundamentals and technical-driven aspects support this prediction.
The upper breakout is confirmed by the increase in trading volume in the control area, which is the final confirmation of the correctness of the move.
The Relative Strength Index (RSI) is currently at 50.83, which is slightly above the midpoint, indicating neutrality. This is a neutral area, which means that the RSI may rise further if it is above 60.
Furthermore, there is a golden cross which means that the 13-day moving average has crossed the 49-day moving average from the upper side which supports the bulls.
This signal is generally considered a preliminary indication of future price growth, which supports further price growth.
Potential scenarios for Bitcoin price action
Whether Bitcoin will be able to reach the $140,000 mark will depend on its ability to overcome important resistance levels.
In case of upside, a successful break above $98,000 would lead to a move towards $100,000. A break of this psychological level could pave the way for further increasing buying pressure, which could lead Bitcoin to $120,000 and then to $140,000.
On the other hand, if the bulls fail to defend $68,000, it would put a question mark on the current Cup and Handle formation. This could open up a more serious pullback that will see Bitcoin fall to $50k.
However, at the moment we are witnessing a strong breakout and the general positive sentiment in the market seems to make a bearish scenario less likely.
Bitcoin’s impact on the wider market
This bullish Bitcoin (BTC USD) story is not limited to technical data. Financial advisors like Robert Kiyosaki have continued to support Bitcoin as an investment asset.
He cited Bitcoin, along with gold and houses, as significant investment opportunities.
Kiyosaki also ignored the criticisms of Buffett and Munger because, according to him, it is crucial that a person knows what he is investing in.
His sentiment towards Bitcoin shows that the cryptocurrency is slowly gaining acceptance 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.
