Cup and Handle Pattern Hints at Breakout Above $80,000

Bitcoin is at a crucial moment. Right now, it’s facing a significant line of resistance, which is a level where the price has struggled to move higher. This could lead to a major price breakout soon. Current indicators are showing bullish signs, meaning there’s potential for the price to go up.

On Monday, a large inflow of funds entered spot Bitcoin ETFs, which is likely a major reason for Bitcoin’s recent price pump. This surge reflects growing interest from large investors, adding bullish pressure to Bitcoin.

Bitcoin has already hit an initial price target of around $67,000, following a breakout from a smaller double-bottom pattern. However, resistance between $67,000 and $68,000 remains a crucial barrier. 

According to analyst Josh of Crypto World, currently, Bitcoin’s price is testing a major descending resistance line around $66,000. A confirmed breakout above $66,000, and ideally above $68,000, could trigger a stronger upward trend, potentially setting up for a bull run.

A breakout at these levels would also validate a larger bullish price target near $80,000, based on a “cup and handle” pattern on the daily chart. If confirmed, this could initiate an upside move for Bitcoin.

Liquidity Map Analysis: 

Recently, many traders had to close their positions when the price was between $66,700 and $67,500. This can create more price swings, or volatility, in the market. Right now, there isn’t much liquidity available, which means that price changes might be more unpredictable until more money comes into the market.

Beyond Bitcoin:

Looking beyond Bitcoin, Ethereum is experiencing some challenges. It is currently rejecting a key resistance area, meaning it is having difficulty moving above a certain price level in the short term. On the other hand, Solana is hovering near a potential breakout point. However, it is facing resistance that it must overcome before it can surge higher.