Bitcoin Price Set For Reversal To $130,000 After Forming Major Cup And Handle Support

Source Newsbtc

Bitcoin’s price action has been trapped in a tight range between $84,000 and $82,000 in recent days, with bulls struggling to push upwards. The general market sentiment is one of a cautious nature, and hopes of a quick return above $90,000 are starting to fade. However, a new technical analysis suggests that Bitcoin could be on the verge of a significant rally, as price action shows the cryptocurrency is currently conforming to the cup-and-handle pattern.

Cup And Handle Support Could Cause A Major Bitcoin Rally

Recent Bitcoin price movements have drawn attention back to a key technical structure of the handle support of a cup-and-handle pattern, suggesting that a bullish setup may be quietly taking shape. This interesting Bitcoin price activity was relayed in a technical analysis by a crypto analyst on the TradingView platform. 

The cup-and-handle pattern in question has been forming over multiple years, with the rounded bottom phase stretching from 2021 to mid-2024. This prolonged accumulation period saw Bitcoin gradually recover from the bearish market cycle before breaking above its neckline resistance. The breakout started the handle formation in the latter half of 2024, a consolidation phase that set the stage for BTC’s next leg up. By November 2024, Bitcoin completed this handle phase and went on an impressive rally that ultimately resulted in a new all-time high of $108,786 in January 2025.

Bitcoin

However, the recent 24% correction from this all-time high has seen the Bitcoin price returning to the neckine resistance of the cup-and-handle formation. The logical next step is for this neckline resistance to serve as support for the price correction and we could see Bitcoin rebound from here. In terms of a price prediction, Elliott wave analysis and projections put the price target above $130,000, particularly at $139,000.

Elliott Wave Analysis Suggests A Surge Toward $130,000

According to the Elliot Waves technical framework, Bitcoin is currently in a larger fifth impulse wave formation. However, this fifth wave, which is generally bullish, has been punctuated by corrective ABC sub-waves, leading Bitcoin to retest the support of the cup-and-handle formation. Now that the support has been met, Bitcoin is in a position to bounce and continue the formation of its fifth impulse wave. This is expected to bring it to the price target above $130,000.

The alignment of the cup-and-handle formation with Elliott wave projections strengthens the case for a major breakout in the coming months. However, Bitcoin’s fundamentals reflect uncertainty in the short term. There is currently a lack of bullish momentum needed to rechallenge the $90,000 mark, which would be the first step needed to reach $130,000. Steady institutional outflows from Spot Bitcoin ETFs have further increased selling pressure, limiting Bitcoin’s ability to regain strength in the short term.

At the time of writing, Bitcoin is trading at $83,500.

Bitcoin
Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Bitcoin Outlook 2025As the Bitcoin market continues to mature, its 2025 outlook appears highly favourable, driven by institutional adoption and regulatory developments.
Author  TradingKey
Jan 23, Thu
As the Bitcoin market continues to mature, its 2025 outlook appears highly favourable, driven by institutional adoption and regulatory developments.
placeholder
What Crypto Whales are Buying For May 2025Crypto whales are making bold moves heading into May 2025, and three tokens are standing out: Ethereum (ETH), Artificial Superintelligence Alliance (FET), and Onyxcoin (XCN).
Author  Beincrypto
Apr 21, Mon
Crypto whales are making bold moves heading into May 2025, and three tokens are standing out: Ethereum (ETH), Artificial Superintelligence Alliance (FET), and Onyxcoin (XCN).
placeholder
Analysts Highlight 4 Reasons Why ETH Price Could Rebound Strongly in MayEthereum (ETH) has declined for five consecutive months. However, it enters May with rising optimism.
Author  Beincrypto
May 07, Wed
Ethereum (ETH) has declined for five consecutive months. However, it enters May with rising optimism.
placeholder
Ethereum Price Ready to Surge—$2,000 Level Could Be Within ReachEthereum price started a fresh increase above the $1,800 zone. ETH is now rising and attempting a move above the $1,850 resistance. Ethereum started a fresh recovery wave above the $1,820 resistance.
Author  NewsBTC
May 08, Thu
Ethereum price started a fresh increase above the $1,800 zone. ETH is now rising and attempting a move above the $1,850 resistance. Ethereum started a fresh recovery wave above the $1,820 resistance.
placeholder
Ethereum Price Explodes Past $2,200 with 25% Surge—Momentum Builds FastEthereum price started a fresh surge above the $2,000 zone. ETH is now up over 25% and consolidating gains near the $2,200 zone. Ethereum started a fresh surge above the $2,000 resistance.
Author  NewsBTC
May 09, Fri
Ethereum price started a fresh surge above the $2,000 zone. ETH is now up over 25% and consolidating gains near the $2,200 zone. Ethereum started a fresh surge above the $2,000 resistance.
goTop
quote