Bitcoin Completes Cup and Handle Pattern, Eyes 57.47% Gain

Bitcoin has recently completed a cup and handle pattern, according to a detailed analysis from TradingView. This technical formation, which began in January, has shown bullish signals indicating a potential breakout. The pattern started with Bitcoin surging to $109,400 on January 20, followed by a decline to around $74,000 on April 9, forming the base of the cup. The rebound in May reached a high of $111,800, marking the right edge of the cup. Subsequently, the price action ranged between $98,300 and $110,700, shaping the handle. This period of consolidation coincided with Bitcoin dipping below its 1D MA50 but rebounded at the 1D MA200, a significant move for the technical setup.

The completion of the cup and handle pattern suggests a bullish outlook for Bitcoin. According to the analyst, the handle segment of the pattern has formed an “isolated” Bull Flag, projecting a technical target at the 2.0 Fibonacci extension, situated at approximately $169,000. To reach this projected level, Bitcoin would need a 57.47% increase from the current pivot level of $107,316.

Technical indicators further support this bullish outlook. Bitcoin has reclaimed its 1D MA50 following the rebound and posted a bullish signal on the MACD. The Moving Average Convergence Divergence (MACD) indicator printed a Bullish Cross, with the MACD line crossing above the signal line. This development typically points to strengthening bullish momentum and supports the possibility of further gains. The MACD crossover aligns with Bitcoin regaining its MA50, reinforcing the bullish outlook based on the completed chart pattern.

Julien Bittel, head of macro research at Global Macro Investor, shared an updated chart highlighting Bitcoin’s historical correlation with global M2 liquidity, which now stands at $94.3 trillion. The chart shows that Bitcoin has generally followed M2 trends with a 12-week lag, maintaining a broad alignment since 2023 despite occasional deviations. Currently, Bitcoin appears to be trailing the growth in global liquidity, creating a divergence that analysts are watching. This macro backdrop, paired with bullish technical signals, suggests that Bitcoin may still have room to follow global M2’s upward path and approach projected cycle targets.