Bitcoin is holding steady above the $100,000 level as of January 7, and traders are curious what’s next.
Bitcoin’s performance has traders, investors, and experts sharing their price predictions.
Everything is good for Bitcoin
Bitcoin’s ability to maintain six figures has already reignited a new wave of optimism, but it’s not all smooth sailing, as they say.
Some bearish signals, like the “head and shoulders” pattern that had been forming throughout December, might be losing their grip.
This classic pattern typically suggests a price reversal, but at least one trader, Aksel Kibar thinks it could fail, as he pointed out that if Bitcoin can break through the potential right shoulder of this pattern, it could signal even bullish momentum, possibly pushing prices up to $116,000.
This is how Edwards & Magee featured a H&S top failure. Price can form a H&S top, but breach of the highest level of the right shoulder results in a failure.
Failure can be traded from the long side.
Why? Because H&S top is already a bearish chart pattern and the market… pic.twitter.com/of3XbU4np6
— Aksel Kibar, CMT (@TechCharts) January 6, 2025
Kibar also warned that bears could still drag Bitcoin down to around $73,800, and that wouldn’t necessarily derail the bullish trend.
“Even if we see a dip to $80K, it could just be a pullback after breaking above $73.7K.”
A textbook cup and handle formation
Another exciting chart formation on the radar is the classic cup and handle pattern. After bouncing back to March highs and facing some jitters around $90,000, traders are starting to feel hopeful again.
Trader Jelle shared that Bitcoin looks ready to complete this formation with a target of $140,000.
#Bitcoin looks ripe to complete the cup & handle formation.
$140,000.
Send it. pic.twitter.com/Nh9ho3WLDR
— Jelle (@CryptoJelleNL) January 6, 2025
Kibar echoed this sentiment, suggesting that if all goes well, we could see prices hitting around $137,000.
Fibonacci hopium
Looking at the bigger picture, Keith Alan from Material Indicators is keeping an eye on where Bitcoin might peak in this bull market, and he pointed out that price movements have been capped by familiar Fibonacci retracement levels.
As I stated this morning, rejections come from predictable places. This time it came from the 1.618 Fib.
Once Bitcoin bulls push past this and return to price discovery making new ATH's, the next levels of resistance are also quite predictable.
The next level I'm eyeing is… pic.twitter.com/fgiKqKENyW
— Keith Alan (@KAProductions) January 6, 2025
He noted that once Bitcoin breaks past these levels and enters new all-time high territory, resistance points will become clearer.
The next resistance levels are pegged at $110,000 and $122,500, thanks to that cup and handle formation.
If Bitcoin continues its upward trajectory from there, Alan believes we could see strong price discovery ahead.
The current resistance zone between $99,000 and $100,000 will be pretty important, so a decisive move above could open the door for new highs, while a slip below $91,378 might signal trouble ahead.
