Bitcoin is showing promising signs that it could make a giant move toward the $100,000 to $150,000 range by early 2025.
Technical indicators on the Bitcoin chart point to a breakout
Price movements for Bitcoin show that various technical indicators are aligning for a quite promising breakout.
The most prominent formation on the charts is the ’cup and handle’, which is a classic textbook pattern that often signals continued upside movement.
This pattern consists of a rounded bottom, the cup, followed by a consolidation phase, the handle.
The formation of the handle suggests that Bitcoin is in a period of consolidation, which often precedes a major bullish breakout.
Cup and handle will bring $100k+ Bitcoin price?
In Bitcoin’s case, the cup began forming after its peak in late 2021, and the handle is currently developing as the cryptocurrency trades below the resistance level of $65,000 to $69,000.
The cup-and-handle pattern typically resolves when the price breaks above its neckline resistance.
Analysts think the price can rise by as much as the distance between the neckline and the lowest point of the cup. For Bitcoin, this distance is about $50,000, starting from around $15,000 at the bottom of the cup to approximately $65,000 at the rim.
An analyst now suggests that this could lead to a target range of $110,000 to $130,000 for Bitcoin in early 2025.
Another analyst, Nestay points out several indicators that also support this bullish outlook. Bitcoin’s weekly Bollinger Bands Width, the BBW has been narrowing since June.
A contracting BBW typically indicates low market volatility, which historically has come before bigger price movements.
Momentum indicators like the Stochastic RSI and relative strength index show that Bitcoin is currently oversold, so price jump could be on the horizon.
Bullish, but bullish enough to pull up the Bitcoin price?
Nestay also mentions the Crypto Fear & Greed Index, which is currently in the fear zone. Historically, extreme fear levels have preceded some of Bitcoin’s biggest upside moves.
The broader economic environment also supports this optimistic view, as an increasing global liquidity index indicates more capital flowing into riskier assets like Bitcoin.
The combination of tightening price action and rising liquidity creates a situation ripe for a breakout, or at least, many experts think.
As we approach October, or as the social media often describes, Uptober, market conditions may become even more favorable for Bitcoin’s price to perform well.
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