A potential Bitcoin cup and handle pattern has emerged on the BTC chart, indicating a possible bullish breakout despite recent volatility. After reaching a local high near $112,000, Bitcoin retraced to the critical $100,000 psychological support level. However, analysts note that buying interest is once again appearing around $102,000, suggesting renewed bullish momentum.
The formation of a cup and handle pattern is being watched closely by traders as a sign that Bitcoin could soon retest the $106,500–$107,000 resistance range if confirmed by volume.
Bitcoin Cup and Handle Formation Builds Above Key Support
On the daily chart, Bitcoin displays a consolidation phase following a double top and corrective pullback. Despite this retreat, the support structure remains intact, and buying volumes have begun to increase modestly. Oscillators such as RSI at 52 and CCI at –59 show neutral sentiment, but overall technical structure remains bullish if $105,500 is breached.
The Bitcoin cup and handle setup is becoming more visible on the hourly chart, with price forming a rounded base and shallow handle, supported by rising volume near $103,500–$104,200. A breakout above $105,500 with strong confirmation could send Bitcoin toward the upper range near $107,000.
Mixed Technical Signals, But Trend Remains Constructive
Momentum indicators are sending mixed signals across timeframes. The Awesome Oscillator is showing a bearish reading at –56, while the Momentum Index sits at –2797, suggesting potential upside reversal.
Meanwhile, MACD remains slightly bearish at 728, though exponential moving averages (EMAs) from 10 to 200 periods are still aligned bullishly. The 10-period EMA is at $104,953, and the 200-period EMA remains solid at $91,614.
Simple moving averages (SMAs), especially the 20- and 30-period lines, are skewing bearish, indicating that mid-term pressure still weighs on the market. However, the pattern’s completion could override these if confirmed with strong price action.
Bitcoin Cup and Handle Structure Could Unlock $107K
Short-term price action has shown a staircase rally from $101,159 to $105,416, followed by a shallow correction. Volume has diminished slightly, but if renewed buy orders step in above $105,500, the Bitcoin cup and handle breakout scenario could activate.
Traders view the pattern’s target between $106,500 and $107,000, aligning with short-term resistance. Failure to hold above $102,000, however, could invalidate the structure and lead to renewed correction.
Conclusion: Bitcoin Cup and Handle Pattern Sets Bullish Stage
The emerging Bitcoin cup and handle formation offers a classic bullish setup that could catalyze further gains if confirmed. With volume returning and key levels intact, the market appears poised for upward movement. Traders will be watching $105,500 closely as the trigger for the next breakout attempt in Bitcoin’s ongoing cycle.
