Bitcoin’s price has been stuck between $82,000 and $84,000 lately, and the excitement about a quick jump above $90,000 is fading. But don’t count Bitcoin out just yet!
The Cup and Handle Pattern
A technical analysis suggests a big Bitcoin rally might be on the horizon. The price action is looking a lot like a “cup and handle” pattern – a bullish signal in technical analysis.
This pattern has been forming over a few years. The “cup” (the rounded bottom) formed between 2021 and mid-2024, as Bitcoin recovered from a bear market. Then, the “handle” (a period of consolidation) formed in the latter half of 2024. After that, Bitcoin shot up to a new all-time high of $108,786 in January 2025!
Recently, Bitcoin’s price dropped about 24% from that high, bringing it back to the “neckline” support of the cup-and-handle. If this support holds, a rebound could be in the works.
Elliott Wave Theory Points to $130,000
Elliott Wave theory adds to the bullish outlook. This theory suggests Bitcoin is in a larger upward trend (a “fifth impulse wave”). Even though there have been some dips, hitting the cup-and-handle support sets Bitcoin up for a bounce and a continuation of this upward trend. The price target, according to this analysis? Over $130,000, potentially even $139,000.
A Word of Caution
While the cup-and-handle and Elliott Wave patterns are bullish, there are some short-term concerns. There’s a lack of strong upward momentum right now. Plus, institutional investors are pulling out of Bitcoin ETFs, putting downward pressure on the price.
Currently, Bitcoin is trading around $83,500. So, while a move to $130,000 is possible based on this technical analysis, it’s not a guaranteed thing. The short-term outlook is still uncertain.
