Bitcoin Price Action Suggests Consolidation Before Potential Breakout to $104,000
A potential breakout towards $104,000 may be brewing for Bitcoin after recent price action formed a developing cup-and-handle pattern on the daily chart. The handle formation suggests that consolidation may precede a continuation of the rally.
The latest daily candle closed higher but formed a long upper wick, indicating seller resistance at elevated price levels. TradingView charts display a rounded bottom structure resembling the cup portion of the pattern.
On-chain data from Glassnode shows that long-term holders added approximately 12,349 BTC on Jan. 4, representing a 93% decline from the late-November selling peak of roughly 185,451 BTC.
Binance perpetual liquidation data reveals a five-to-one ratio of long positions to short positions, creating vulnerability to price pullbacks that could trigger cascading liquidations.