Bitcoin has recently been caught in a narrow trading range between $82,000 and $84,000, with buyers struggling to maintain upward momentum. Market sentiment is cautious, leading to dwindling expectations for a swift rebound to previous highs of $90,000. Nevertheless, technical analysis suggests that Bitcoin might be poised for a significant rally, as current price trends indicate the formation of a cup-and-handle pattern.
This cup-and-handle structure has been under development for several years, marking a prolonged period of accumulation that began in 2021 and continued until mid-2024. During this time, Bitcoin exhibited gradual recovery from a bearish phase before surpassing its neckline resistance. The establishment of the handle phase occurred in the latter half of 2024, resulting in a consolidation that set the stage for Bitcoin ’s subsequent surge. By November 2024, completion of this handle phase led to an impressive rally, with Bitcoin achieving an all-time high of $108,786 in January 2025.
The recent decline of 24% from this peak has seen Bitcoin revisit the neckline of the cup-and-handle pattern. Analysts point out that this neckline could now function as a support level, encouraging a potential rebound. Projections based on both technical frameworks and Elliott wave analysis suggest that Bitcoin could target prices above $130,000, with particular attention on the $139,000 level.
Currently, Bitcoin is in a larger fifth impulse wave formation within the Elliott Waves framework. This typically bullish wave has been affected by corrective sub-waves, causing Bitcoin to retest its cup-and-handle support. The expectation is that a bounce could ensue, allowing the continuation of this fifth wave. However, current fundamentals reflect a degree of uncertainty. A lack of bullish momentum persists, which is essential for challenging the critical $90,000 threshold and paving the way toward the $130,000 target. Institutional outflows from Spot Bitcoin ETFs have added to selling pressure, further complicating Bitcoin ’s short-term recovery. As of now, Bitcoin is trading at $83,837, representing a 1.87 percent increase in the past 24 hours, according to CoinMarketCap data.
