Bitcoin Primed for a Breakout: Cup & Handle and IH&S Patterns Signal Significant Moves

Bitcoin is nearing a crucial moment as two major bullish formations, the Cup & Handle and the Inverse Head and Shoulders (IH&S), signal a possible breakout. With momentum increasing and important resistance levels coming into play, the market may be on the brink of a significant upward move.

Key Takeaways

Bitcoin is currently trading above $93,160, nearing a breakout from the Cup & Handle pattern with a target of $104,000.
Major resistance levels include $98,200 and $107,500, with a break above these indicating a resumed long-term uptrend.
The Inverse Head and Shoulders pattern suggests a reversal with current pricing above $87,500, expecting further testing at $95,000.
Support levels to monitor are between $83,822 and $82,477, with a bearish trend confirmed below $82,477.

Bitcoin

BTC Surges Past $93,160, Cup & Handle Points to $104,000

Analyzing Bitcoin on a 4-hour timeline, analyst Kamile Uray reports that the price is now above $93,160. He is closely watching this price point, as a close above it would confirm a breakout from the newly formed Cup & Handle pattern. This pattern traditionally indicates a target around $104,000.

If Bitcoin approaches the $104,000 target without a wicking reversal, it would also break the falling blue trendline. Achieving both the target and the trendline break would strongly support the ongoing uptrend. The next significant resistance levels to watch are at $98,200 and $107,500. A breakout above $107,500 and the downward trendline on the daily chart would mark a significant sign that the long-term bullish trend is fully revived.

Bitcoin
BTC eyes a rebound back above the $100,000 mark | Source: Chart from Kamile Uray on X

Uray recommends that retests after breaking out of the pink box (the handle resistance area) could be viable trading entries. It's essential to set a stop-loss at a daily close below the pink box for risk management purposes.

If the price struggles to maintain the pink box, immediate support to observe lies between $83,822 and $82,477. A daily close underneath $82,477 would verify a continuation of the downtrend, leading the market to explore the next support zone at $74,496 to $71,237—the previous peak broken back in November 2024. Should this zone hold, a significant uptrend reversal could again be anticipated.

IH&S Pattern Validates Bullish Reversal Momentum

A recent update from Crypto VIP Signal highlights Bitcoin’s latest price movements, confirming a noteworthy bullish reversal. The asset has successfully moved past the $87,500 threshold and has also crossed the crucial $90,000 level. This upward shift corroborates that the Inverse Head and Shoulders (IH&S) pattern is functioning as expected, unleashing a strong reversal signal.

The analyst noted that the current market structure remains robust; the price rise is supported by healthy trading volume. With the bullish reversal confirmed, Crypto VIP Signal indicated that the next technical milestone for the market is $95,000, making it interesting to observe how the price performs when it approaches this level.

BTC trading at $92,976 on the 1D chart | Source: BTCUSDT on Tradingview.com