January 7, 2025 – Bitcoin’s bullish momentum continues as traders anticipate higher levels.
Bitcoin (BTC) held steady above the $100,000 mark on 7th January, following a volatile session on Wall Street. With a daily gain of 4%, market commentators are shifting focus to short-term price predictions and key chart patterns that hint at the cryptocurrency’s next moves.
Head-and-Shoulders Pattern Faces Reversal
The sustained rise in Bitcoin’s price has put bearish signals, such as the “head and shoulders” (H&S) pattern, into question. Traditionally, this pattern indicates a potential reversal, characterised by three peaks: a higher central “head” flanked by two lower “shoulders.”
Bitcoin’s recent all-time high of $108,000 represents the “head” in this pattern, with analysts closely monitoring the price as it challenges the “right shoulder” resistance.
BTC/USD chart. Source: Aksel Kibar/X
Trader and analyst Aksel Kibar suggested that a breach of this level could invalidate the bearish pattern. “A pattern negation should be considered bullish,” Kibar stated in a thread on X (formerly Twitter). If invalidated, Kibar sees a bullish target of $116,000.
Even in a worst-case scenario, where Bitcoin retraces to $80,000, Kibar argued this would still align with a broader bullish pullback above the significant $73,800 level from March 2024.
Cup and Handle Pattern Signals $140K Target
In another positive development, the cup and handle pattern—a historically bullish chart formation—is gaining traction. Bitcoin recently retraced near $90,000 after revisiting its March highs, sparking concerns over a potential breakdown. However, traders now express renewed confidence in the formation.
BTC/USD 1-hour chart. Source: TradingView
“Bitcoin looks ripe to complete the cup and handle formation,” noted trader Jelle, setting a potential target of $140,000.
Similarly, Kibar maintains a bullish outlook, pointing to a long-term target of $137,000 if the pattern succeeds. Other analysts, including commentator MartyParty, have reiterated that the weekly cup and handle projection of $125,000 remains intact.
Fibonacci Levels and the Road Ahead
Zooming out further, Fibonacci retracement levels continue to provide key resistance points for Bitcoin. Keith Alan, co-founder of Material Indicators, highlighted that Bitcoin’s recent surge was capped by the 1.618 Fibonacci level, a familiar barrier from its 2021 bull run.
BTC/USD 1-week chart with Fibonacci levels. Source: Keith Alan/X
Alan believes once Bitcoin breaks past this resistance and re-enters price discovery, the next levels are predictable. Key targets include $110,000 and $122,500, aligning with projections from the cup and handle pattern.
Looking beyond, Alan pointed to Bitcoin’s “Lifetime Channel,” which could act as a ceiling during this cycle. “The cycle top lies somewhere between $120K and higher Fibonacci resistance levels like 2.618, 3.618, or even 4.618,” Alan explained.
What’s Next for Bitcoin?
As Bitcoin solidifies its position above six figures, bullish patterns, and retracement levels suggest further upside potential. Traders are eyeing $110,000 as the next immediate milestone, while longer-term projections hint at targets as high as $140,000.
With patterns like the head and shoulders nearing invalidation and the cup and handle still in play, the next few weeks could be critical in shaping Bitcoin’s path forward. For now, the world’s largest cryptocurrency is holding firm, reigniting optimism among investors and traders alike.
