U.Today - All eyes are currently on Bitcoin's price to see if it will validate a textbook pattern indicated on its chart and, in the process, hit fresh record highs.
Ali, a crypto analyst, has identified the legendary cup and handle pattern on the Bitcoin price chart. This technical formation, often seen as a bullish indicator, suggests that Bitcoin could be on the verge of a significant price surge.
According to Ali, Bitcoin's breakout from this pattern signals a potential upside target of $276,400. The cup-and-handle pattern consists of a "cup" shape, where the price gradually declines and then rises to form a rounded bottom, followed by a "handle," in which the price consolidates briefly before breaking out to new highs.
The cup-and-handle pattern has appeared in Bitcoin’s price history during previous bull runs, often preceding significant increases. If validated, this current setup sparks optimism for Bitcoin’s price trajectory.
Similarly, in a recent X post, CryptoQuant predicts that Bitcoin’s price could soar past $200,000 in 2025. It cites potential $520 billion inflows, pro-crypto policies and a bullish four-year cycle as factors that might drive this outlook. According to CryptoQuant, Bitcoin's multiplier effect might result in a $2-$6 increase in market value for every $1 inflow.
Bitcoin price action
At the time of writing, BTC was up 1.13% in the last 24 hours to $103,358. Bitcoin reached highs of $105,970 in Friday's session, extending a rebound from lows of $95,900 on Jan. 13.Following a major sell-off at the week's start, cryptocurrencies rebounded as riskier assets surged widely in response to comforting U.S. inflation data, which reignited expectations of future Federal Reserve interest rate reduction.
In the last 24 hours, gains across various crypto assets have been reversed, with the majority trading in losses. In the last 24 hours, $477 million worth of cryptocurrency positions were liquidated, per CoinGlass data.
So far this year, Bitcoin has traded quite closely with stocks. It has been in consolidation mode since late December, when Federal Reserve Chair Jerome Powell issued an inflation warning, which was later lifted this week following two mild December inflation figures. Bitcoin ETFs have received more than $1 billion in inflows during the last two days.