Bitcoin (BTC) is sending out signals pointing to an explosive rise into the $100,000 to $150,000 range by the first quarter of 2025.
Typical BTC price pattern signals a major breakout
Bitcoin's recent price action has shown a confluence of technical indicators coinciding with a breakout. The most notable pattern forming on the charts is the “cup and handle”, a classic technical formation signaling a continuation of the bull market.
This pattern is characterized by a rounded bottom (the cup) followed by a consolidation phase (the handle). The formation of the handle often signals a period of consolidation preceding a major bullish breakout.
In the case of Bitcoin, the cup began to form after the peak in late 2021 and a handle is now forming as the cryptocurrency fluctuates below the resistance levels of $65,000 to $69,000.
BTC/USD weekly price chart. Source: Elja
The cup-and-handle pattern resolves when the price rises above the neckline resistance and, as a technical rule, rises to the maximum distance between the neckline and the lowest point of the cup.
For Bitcoin, the distance between the bottom of the cup (around $15,000) and the resistance of the rim (around $65,000) is around $50,000.
Projecting this distance upwards from the breakout point, independent analyst Elja suggests a target range for BTC in early 2025 of $110,000 to $130,000.
Bitcoin is a 'ticking time bomb' – analyst
A series of indicators highlighted by anonymous analyst Nestey point to an imminent move to weigh on the cup-and-handle bull market.
For example, Bitcoin's weekly Bollinger Band Width (BBW) indicator has been narrowing since June. Technically, a narrowing BBW suggests lower market volatility and has historically preceded larger price movements.
Meanwhile, momentum oscillators such as the Stochastic RSI and the Relative Strength Index (RSI) indicate oversold conditions.
sauce: Nestay
Nestay further highlights the popular Crypto Fear & Greed Index, which is in the “fear” realm: Historically, Bitcoin's most explosive rallies have been preceded by periods of extreme fear, signaling oversold conditions and abating selling pressure.
Related: Bitcoin on track for historic first 3-month rally as analysts eye $92K BTC
The macroeconomic backdrop also lends further weight to this bullish picture, with the rise in the Global Liquidity Index signaling capital inflows into risk assets like Bitcoin.
This surge in liquidity, combined with tightening Bitcoin price volatility (which Nestay described as a “ticking time bomb”), creates a scenario in which a potential breakout could occur, especially as the market enters October and November.
This article does not contain any investment advice or recommendations. Any investment or trading involves risks and readers should conduct their own research when making any decision.
