In recent days, Bitcoin’s price has been confined within a narrow range of $84,000 to $82,000, with buyers finding it difficult to initiate an upward movement. The overall market sentiment remains cautious, and the optimism for a swift return above $90,000 is beginning to diminish. Nevertheless, a recent technical analysis indicates that Bitcoin may be on the brink of a substantial rally, as its price movement appears to be adhering to a cup-and-handle pattern.
Cup And Handle Support May Trigger A Significant Bitcoin Rally
The latest movements in Bitcoin’s price have rekindled focus on the crucial technical structure of the handle support associated with the cup-and-handle pattern, hinting that a bullish setup might be quietly developing. This intriguing price behavior was highlighted in a technical analysis shared by a crypto analyst on the TradingView platform.
The cup-and-handle pattern has been evolving over several years, with the rounded bottom phase extending from 2021 to mid-2024. During this lengthy accumulation phase, Bitcoin gradually emerged from the bearish market cycle before breaching its neckline resistance. This breakout prompted the formation of the handle in the latter half of 2024, a consolidation phase that prepared BTC for its next upward movement. By November 2024, Bitcoin completed this handle phase and embarked on a remarkable rally, ultimately reaching a new all-time high of $108,786 in January 2025.
However, a recent 24% correction from this peak resulted in the Bitcoin price returning to the neckline resistance of the cup-and-handle formation. The logical next step would be for this neckline resistance to act as support during this price correction, potentially allowing Bitcoin to rebound from this level. In terms of price projections, Elliott wave analysis and forecasts suggest targets exceeding $130,000, specifically around $139,000.
Elliott Wave Analysis Points to a Surge Toward $130,000
Based on the Elliott Waves technical framework, Bitcoin is currently in the formation of a larger fifth impulse wave. However, this bullish fifth wave has been interrupted by corrective ABC sub-waves, prompting Bitcoin to retest the support of the cup-and-handle formation. With support met, Bitcoin is poised to bounce back and continue the development of its fifth impulse wave, which is anticipated to elevate its price to targets above $130,000.
The synergy between the cup-and-handle formation and the Elliott wave projections bolsters the argument for a significant breakout in the upcoming months. Nonetheless, Bitcoin’s fundamentals reflect uncertainties in the near term. Currently, there is an absence of the bullish momentum required to reattempt the $90,000 mark, which is the initial step necessary to reach $130,000. Continued institutional outflows from Spot Bitcoin ETFs have intensified selling pressure, hindering Bitcoin’s ability to regain strength in the short term.
At the time of this writing, Bitcoin is trading at $83,500.
