Bitcoin, the flagship cryptocurrency, is currently in a bearish trend, with its price dropping from $72,000 to around $63,500. However, a key technical indicator suggests that the price could soon surpass $100,000. According to a technical analysis by TradingShot on TradingView, Bitcoin’s price chart has formed a giant cup and handle pattern, which is considered a bullish signal in the market.
The cup and handle pattern occurs when the price of a security trend downward, forms a “u” shape, and then sees a slight downward drift forming the handle. The analyst points out that while this technical pattern is valid, some traders may have ignored it due to a focus on shorter-term price action or cyclical structures. Currently, the chart is in the process of completing its handle as the price trends downward, with BTC recently dropping from $65,000 to $63,500.
The cup portion of the pattern formed between early 2022 and mid-2023, while the handle has been forming through a downward channel into 2024. Looking ahead, the analysis suggests that after the handle completes, Bitcoin could experience an upward movement that could propel it to a target zone of $100,000 to $110,000, assuming the 1D MA200 holds as support. This indicates a potential upside for the cryptocurrency in the near future.
Despite the recent price plunge, data shows that investors have become mainly fearful or disinterested in Bitcoin. On-chain analytics firm Santiment noted on the microblogging platform X that this extended level of Fear, Uncertainty, and Doubt (FUD) is rare, as traders continue to capitulate. The firm suggests that bitcoin trader fatigue combined with ongoing whale accumulation generally leads to bounces that reward patient investors.
Overall, while Bitcoin is currently in a bearish trend, technical indicators suggest a potential upside with a target price of $100,000 to $110,000. The cup and handle pattern on the price chart indicates a bullish signal, and if the 1D MA200 holds as support, Bitcoin could see a significant upward movement in the near term. Despite investor fear and disinterest, patient traders may be rewarded with potential bounces in the cryptocurrency market.
