Bitcoin Cup-and-Handle Pattern Points to $104,000 Breakout

Bitcoin's recent price action has sparked interest among analysts, who point to a developing cup-and-handle pattern on the daily chart. This technical formation typically indicates a continuation of the trend after completion, potentially leading to a breakout towards $104,000.

The cup-and-handle pattern is formed by a rounded bottom structure, resembling the cup portion of the pattern, while recent price action suggests the handle formation may be underway. The latest daily candle closed higher but formed a long upper wick, indicating seller resistance at elevated price levels.

On-chain data from Glassnode shows that long-term holders have been accumulating Bitcoin, with 12,349 BTC added on January 4, representing a 93% decline from the late-November selling peak of roughly 185,451 BTC. However, this buying activity remains measured, and Binance perpetual liquidation data shows a five-to-one ratio of long to short positions, creating vulnerability to price pullbacks that could trigger cascading liquidations.

Exchange inflow data from CryptoQuant demonstrates a substantial reduction in selling pressure, with total exchange inflows dropping from approximately 43,940 BTC on December 31 to roughly 3,970 BTC by January 5, a decline exceeding 90%. Santiment data tracking Spent Coins Age Bands shows on-chain activity decreased 80% during the same period, falling from around 28,033 BTC to approximately 5,644 BTC.