Bitcoin showed some impressive strength this past week, holding strong consolidation around local highs after a bounce up from the mid-week leg down. The crypto is still relatively high, trading around $106,952 with a price action around these levels of $98,300 and $110,700. Analysts are hyped at a possible technical target of $169,000. They point to the fulfillment of a cup and handle pattern formation that began in January.
Technical Analysis Indicates Bullish Momentum
This rally that lasted into May peaked at $111,800 on May 22. This peak formed the upper boundary of the cup in the cup and handle formation. Bitcoin first jumped to $109,400 on Jan 20th before retracing and bottoming around $74,000 on April 9th. The handle portion of this evolution has created an “isolated” Bull Flag pattern, grading out the bullish stance with additional conviction.
The chart sets a technical aspirational target based on the 2.0 Fibonacci extension, located at around $169,000. In order to achieve this anticipated price, Bitcoin would need a 57.47% move up from the current pivot point of $107,316. This bullish technical formation bodes well for strong upside potential in the near term.
Market Dynamics and Liquidity
Onchain, bitcoin has demonstrated reliable and sustained buying pressure, as shown by a recent high of ~$107,980 between June 25–26. The cryptocurrency has even managed to keep climbing toward $50 K, a clear sign of its resilience and strength and investor confidence. Today, Bitcoin still trades around local highs, a testament to bullish investor sentiment.
In this case, Bitcoin’s price movements have a 0.90 correlation with global M2 liquidity. The latter is currently at a global M2 of $94.3 trillion. This positive correlation implies that macroeconomic variables and liquidity conditions greatly impact the price dynamics of Bitcoin.
Future Outlook
Both analysts and investors alike are keenly tracking Bitcoin’s capacity to maintain its present momentum and punch through existing levels of resistance. The $169,000 target is a stretch goal, and accomplishing this would involve some serious market challenges to overcome. The current technical setup combined with favorable market sentiment was a powerful one-two punch to lay the groundwork for future gains.
