Pakinomist – All eyes are currently on the price to see if it will validate a textbook pattern indicated on its chart, hitting new record highs in the process.
Ali, a cryptoanalyst, 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 may be on the verge of a significant price increase.
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 price gradually declines and then rises to form a rounded bottom, followed by a “handle” where price consolidates briefly before breaking out to new highs.
The cup-and-handle pattern has appeared in Bitcoin’s price history during previous bullruns, often preceding significant increases. If validated, this current setup raises optimism for Bitcoin’s price trajectory.
Similarly, in a recent X post, CryptoQuant predicts that Bitcoin’s price could rise above $200,000 by 2025. It cites potential $520 billion in inflows, pro-crypto policies and a bullish four-year cycle as factors that could drive this outlook. According to CryptoQuant, Bitcoin’s multiplier effect can result in a $2-$6 increase in market value for every $1 inflow.
Bitcoin price action
At the time of writing, BTC had risen 1.13% in the last 24 hours to $103,358. Bitcoin hit highs of $105,970 in Friday’s session, extending a rebound from a January 13 low of $95,900.
After a big sell-off at the start of the week, cryptocurrencies rallied as riskier assets rose sharply in response to comforting US inflation data, which revived expectations of a future rate cut by the Federal Reserve.
In the last 24 hours, gains across various cryptoassets have been reversed, with the majority trading at a loss. In the last 24 hours, cryptocurrency positions worth $477 million were liquidated, as of 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 Chairman Jerome Powell issued an inflation warning that was lifted later this week after two soft December inflation numbers. Bitcoin ETFs have received more than $1 billion in inflows over the past two days.
