Bitcoin Headed for $100K as Classic Cup and Handle Pattern Signals Breakout
thecryptobasic.com 27 August 2024 12:50, UTC Bitcoin has shown strong signs of recovery over recent weeks, surpassing crucial resistance levels and catching the attention of market analysts.
The bullish retracement has led to increasing speculation about the crypto’s next significant price move. Analysts are now monitoring key technical patterns and market behavior, suggesting that Bitcoin could soon reach the $100,000 milestone.
One of the major indicators contributing to this sentiment is the classic cup and handle formation that has been developing for over three years.
Pattern Signals Potential Breakout
According to a chart analysis shared by Jelle on X, Bitcoin has been forming a clear cup shape since late 2021, when its price initially surged to above $68,000. Following this peak, the price dropped sharply, finding support in the $16,000 to $17,000 range by December 2022.
This rounded bottom indicates the formation of a textbook cup shape. The gradual recovery that followed took Bitcoin’s price back toward the $60,000 – $70,000 range in 2024, where it started consolidating in a handle pattern.
This handle suggests a potential breakout is imminent, with an analyst predicting Bitcoin will reach $100,000 as it completes this long-term pattern.
Institutional Demand and Historical Patterns
In addition to technical patterns, Bitcoin’s future prospects are being fueled by institutional activity and cyclical market trends. One analyst, known as Crypto Winkle, emphasizes that the crypto’s path toward $100,000 is bolstered by the Bitcoin halving event, which happened in April, historically associated with price surges.
Institutional adoption, such as increased interest in Bitcoin ETFs, is also contributing to the growing demand for the asset. Notably, the analyst has observed that cyclical patterns in previous market trends support the possibility of Bitcoin reaching $100,000 during this cycle.
Further supporting this outlook is the ongoing retest of Bitcoin’s market liquidity boundaries. Recent activity around the $55,000 to $60,000 range highlights this level as a key base for potential upward movement.
CVDD Metrics Suggest Further Gains Ahead
Market experts are also turning to on-chain data for insight into Bitcoin’s future price movements. Analyst Ali Martinez has pointed to Cumulative Value Days Destroyed (CVDD), a metric that tracks the activity of long-term Bitcoin holders, as a useful indicator of market tops and bottoms.
The CVDD metric has identified significant accumulation phases, suggesting that if Bitcoin can close above $65,440, its next local top could be around $86,910. Bitcoin would need to rise by approximately 39.43% to reach $86,910 from its price of $62,331 recorded today.
