Bitcoin's Cup-and-Handle Pattern Signals Potential $104,000 Breakout
Bitcoin's recent price action has led to speculation about its future trajectory. The cryptocurrency gained approximately 3% over recent trading sessions, but technical indicators suggest consolidation may precede a potential breakout toward $104,000.
The daily chart shows a developing cup-and-handle pattern, a formation that typically signals continuation after completion. TradingView charts display a rounded bottom structure resembling the cup portion of the pattern, while recent price action suggests the handle formation may be underway.
According to on-chain data from Glassnode, long-term holders added approximately 12,349 BTC on January 4, representing a 93% decline from the late-November selling peak of roughly 185,451 BTC. This decrease in selling pressure is further supported by exchange inflow data from CryptoQuant, which shows total exchange inflows dropped from around 43,940 BTC on December 31 to approximately 3,970 BTC by January 5, a decline exceeding 90%.
The cup-and-handle pattern projects a measured move target near $104,000 from the current neckline, representing roughly 12% upside potential. However, Bitcoin must hold above $89,450 to maintain the bullish structure, while a daily close above $94,710 would confirm breakout validity.