Bitcoin Breaks Out Of Cup-And-Handle Pattern, Eyes $276,000 Target
The market’s leading cryptocurrency, Bitcoin (BTC), has rejoined the crypto rally, gaining momentum on Friday amid reports that President-elect Donald Trump may issue an executive order prioritizing cryptocurrencies as soon as he takes office.
As of the latest data from CoinGecko, Bitcoin surged nearly 5% in the 24-hour time frame, reaching $104,000. The broader cryptocurrency market, represented by the CoinDesk 20 index, also saw an uptick, rising 1% following a 4% increase on Thursday.
Excitement Builds Ahead Of Trump’s Executive Orders
This newfound interest in Bitcoin has positively impacted exchange operators, with shares of platforms like Coinbase and Robinhood climbing approximately 5% and 3%, respectively.
According to CNBC, the excitement follows a Bloomberg report indicating that Trump might establish the crypto advisory council he had previously promised, potentially giving the industry a significant voice in his administration.
Discussions surrounding a national Bitcoin stockpile are also part of the anticipated executive order, which is expected to address various aspects of cryptocurrency policy, according to a report by the New York Times.
While the prospect of a pro-crypto administration and Congress in 2025 is encouraging for the industry, some Wall Street analysts caution that the full impact may not be felt immediately.
Coins and crypto projects outside of Bitcoin could reportedly benefit the most from clear and supportive regulations, especially as they have been more vulnerable to Securities and Exchange Commission (SEC) lawsuits and perceived banking discrimination under the previous administration.
Analysts Eye Record-Breaking Bitcoin Prices
Bitcoin’s performance has been closely aligned with the stock market this year, following a period of consolidation that began in late December.
This came after Federal Reserve Chair Jerome Powell raised concerns about inflation, a sentiment that has since eased with two favorable inflation reports in January.
Expectations are high that any announcements from the incoming administration next week could propel Bitcoin’s price even higher, potentially setting new records.
Analysts believe that the new administration, along with a new SEC chairman, could usher in opportunities for innovation within the cryptocurrency space.
JPMorgan analyst Kenneth Worthington noted that while the environment is promising, the market capitalization of other tokens and lower investor interest may limit the impact of new cryptocurrency products.
In a favorable technical development, crypto analyst Ali Martinez recently pointed out that Bitcoin has broken out of a cup-and-handle pattern, a bullish indicator in technical analysis.
This pattern resembles a “cup” followed by a downward trend, or “handle,” which typically signals a buying opportunity. According to Martinez, this suggests a potential upside target of $276,400 for Bitcoin—more than doubling its record high of $108,000 reached at the end of last year.
Featured image from DALL-E, chart from TradingView.com
