Bitcoin Price Set For Reversal To $130,000 After Forming Major Cup And Handle Support
Bitcoin’s price action has been trapped in a tight range between $84,000 and $82,000 in recent days, with bulls struggling to push upwards. The general market sentiment is one of a cautious nature, and hopes of a quick return above $90,000 are starting to fade. However, a new technical analysis suggests that Bitcoin could be on the verge of a significant rally, as price action shows the cryptocurrency is currently conforming to the cup-and-handle pattern.
Cup And Handle Support Could Cause A Major Bitcoin Rally
Recent Bitcoin price movements have drawn attention back to a key technical structure of the handle support of a cup-and-handle pattern, suggesting that a bullish setup may be quietly taking shape. This interesting Bitcoin price activity was relayed in a technical analysis by a crypto analyst on the TradingView platform.
The cup-and-handle pattern in question has been forming over multiple years, with the rounded bottom phase stretching from 2021 to mid-2024. This prolonged accumulation period saw Bitcoin gradually recover from the bearish market cycle before breaking above its neckline resistance. The breakout started the handle formation in the latter half of 2024, a consolidation phase that set the stage for BTC’s next leg up. By November 2024, Bitcoin completed this handle phase and went on an impressive rally that ultimately resulted in a new all-time high of $108,786 in January 2025.
However, the recent 24% correction from this all-time high has seen the Bitcoin price returning to the neckine resistance of the cup-and-handle formation. The logical next step is for this neckline resistance to serve as support for the price correction and we could see Bitcoin rebound from here. In terms of a price prediction, Elliott wave analysis and projections put the price target above $130,000, particularly at $139,000.
Elliott Wave Analysis Suggests A Surge Toward $130,000
According to the Elliot Waves technical framework, Bitcoin is currently in a larger fifth impulse wave formation. However, this fifth wave, which is generally bullish, has been punctuated by corrective ABC sub-waves, leading Bitcoin to retest the support of the cup-and-handle formation. Now that the support has been met, Bitcoin is in a position to bounce and continue the formation of its fifth impulse wave. This is expected to bring it to the price target above $130,000.
The alignment of the cup-and-handle formation with Elliott wave projections strengthens the case for a major breakout in the coming months. However, Bitcoin’s fundamentals reflect uncertainty in the short term. There is currently a lack of bullish momentum needed to rechallenge the $90,000 mark, which would be the first step needed to reach $130,000. Steady institutional outflows from Spot Bitcoin ETFs have further increased selling pressure, limiting Bitcoin’s ability to regain strength in the short term.
At the time of writing, Bitcoin is trading at $83,500.
