Bitcoin has struggled this week as global trade tensions and Federal Reserve policies weigh on market sentiment. The crypto fear and greed index has slipped to 35, reflecting growing uncertainty among investors. Meanwhile, Bitcoin’s spot ETF inflows have dropped to $57 billion from their peak of $68 billion earlier this year.
Despite this short-term weakness, technical indicators suggest a strong rebound in the long run. Two rare chart patterns—the cup and handle and the bullish flag—point to a potential Bitcoin rally to $166,000.
The Cup and Handle Formation Hints at $123K Target
Bitcoin’s weekly chart shows a well-defined cup and handle pattern that formed between November 2021 and November 2023. This classic bullish setup consists of a rounded bottom (the cup) followed by a consolidation phase (the handle).
BTC price chart | Source: crypto.news
In technical analysis, the price target for this pattern is calculated by measuring the cup’s depth and adding that to the breakout level. Since the cup’s depth is around 80%, Bitcoin could rise to $123,000 if this formation plays out.
Bullish Flag Pattern Points to $166K Breakout
Alongside the cup and handle, Bitcoin is also forming a bullish flag pattern—a continuation pattern that typically precedes significant price gains. This setup consists of a sharp upward movement (flagpole) followed by a consolidation phase (flag).
In this case, the flagpole measures about 55%, indicating that if BTC breaks out from the upper boundary, the next target could be $166,000. However, since this is a weekly chart pattern, the breakout could take months or even years to materialize.
Market Conditions May Delay the Rally
While technicals look promising, external factors like U.S. trade policies and Federal Reserve decisions could slow Bitcoin’s growth. The Fed recently maintained its hawkish stance, signaling only two rate cuts in 2024, which could limit immediate upside potential.
Despite current market challenges, Bitcoin’s long-term technical setup remains bullish. The cup and handle pattern suggests a move to $123K, while the bullish flag points to $166K over time. However, macroeconomic factors could delay this surge, making patience key for long-term investors.
