Bitcoin price surged past $109,000 today with a 3.28% gain, signaling a bullish Cup and Handle breakout that could pave the way for a new all-time high (ATH). This rally follows weeks of consolidation and a textbook technical setup, marking the most significant breakout in BTC since early May.
Technical Analysis: Cup and Handle Pattern Breakout
The daily chart reveals a clear Cup and Handle structure, characterized by:
- A rounded base formed between March and May
- A consolidated handle throughout June
The breakout above $107,000 resistance** has now triggered upward momentum, with trading volume confirming bullish sentiment. Traders are eyeing a daily close above **$110,000 to solidify the breakout.
🔹 Key Indicators:
- RSI hovers below 60, indicating room for growth without overbought conditions.
- A successful breakout could propel BTC to $168,000, based on the 50% cup depth projection.
👉 Explore real-time BTC price trends
Global M2 Money Supply Fuels Bitcoin’s Rally
Global M2 supply (total money supply, including cash, deposits, and savings) has risen steadily, signaling expanding liquidity—a bullish catalyst for Bitcoin. Historically, BTC price movements correlate with M2 trends after a 12-week lag, suggesting further upside potential.
Bullish Chart Patterns Aligning
Crypto analyst Collin Talks Crypto highlighted four macro formations supporting the breakout:
- Inverse Head and Shoulders → Target: $150,000
- Bull Flag → Continuation signal post-consolidation
- Bullish Pennant → Symmetric consolidation preceding upward movement
- Cup and Handle → Primary driver of current rally
With M2 hitting an ATH of $21.94 trillion**, Bitcoin’s next psychological barrier is **$110,000, followed by:
- Short-term target: $116,000
- Optimistic projection: Fulfilling the Cup and Handle pattern
Fundamentals Strengthen Bitcoin’s Case
On-Chain Metrics
- Glassnode reports most BTC holders are back in profit at $107,000.
- Low distribution: Long-term holders (LTHs) resist selling, indicating confidence in higher prices.
- Declining realized profits: Investors hold for future gains rather than cashing out early.
Institutional Support
- Spot Bitcoin ETFs continue steady inflows, adding institutional momentum.
- Example: BlackRock’s Bitcoin ETF outperforms its S&P 500 fund in revenue.
👉 Stay updated on ETF inflows
FAQ: Bitcoin Price and Market Trends
Q1: What triggers a Cup and Handle breakout?
A: A combination of technical confirmation (price surpassing resistance) and rising volume, often backed by macro liquidity trends.
Q2: How does M2 affect Bitcoin’s price?
A: Expanding M2 signals increased liquidity, historically leading to BTC price rallies after a 12-week lag.
Q3: What’s the significance of $110,000 for BTC?
A: It’s a psychological resistance level. A clean break could accelerate momentum toward $116,000 and beyond.
Q4: Are institutional investors driving this rally?
A: Yes. ETF inflows and hold behavior from LTHs suggest strong institutional and long-term investor participation.
Disclaimer: This content is for informational purposes only and does not constitute financial advice.