Bitcoin Bulls Eye $100K as BTC Price Holds Above Six Figures: What's Next?

Bitcoin (BTC) has been holding firm above $100,000, defying the volatility of Wall Street and giving traders renewed hope for bullish price action in the near term. As of January 7, the leading cryptocurrency continued to trade above the six-figure mark, posting a 4% daily gain. This price level has sparked a wave of optimism among market analysts, who are weighing in on where Bitcoin’s price could head next.

Bearish Patterns Under Scrutiny

For much of December, traders had been watching a potential "head and shoulders" (H&S) pattern on Bitcoin’s daily chart. Typically, this formation signals a reversal in an uptrend, characterized by three peaks: two lower “shoulders” and a higher “head” between them. In Bitcoin’s case, the all-time high of $108,000 served as the head of the pattern, leading some to anticipate a price pullback.

However, recent price action is challenging this bearish outlook. Aksel Kibar, a prominent trader and analyst, noted that the potential H&S pattern may be on the verge of failure. He explained that Bitcoin’s price is now testing the high of the right shoulder, and if it breaks through this level, it would invalidate the bearish pattern. Should the H&S fail, Kibar sees a price target of $116,000 as a potential next stop for Bitcoin. Even if the price does experience a pullback toward the $80,000 range, Kibar emphasized that such a move could simply be a temporary retracement in a larger bull run.

Bullish “Cup and Handle” Formation

In addition to the H&S pattern, Bitcoin traders are also keeping a close eye on another technical formation: the "cup and handle." This pattern is often seen as a precursor to a strong upward breakout. Bitcoin’s price action has been building toward completing the cup and handle formation, and some analysts are now more confident that the pattern will hold.

Trader Jelle recently commented that Bitcoin is in an ideal position to finish the cup and handle, with a target price of $140,000. Similarly, other analysts, including MartyParty, have cited a weekly cup and handle formation with a target of $125,000. These optimistic forecasts are based on Bitcoin’s recent consolidation and its continued strength above $100,000.

Fibonacci Levels Provide Insight into Resistance

While the cup and handle formation is garnering attention, analysts are also looking at key Fibonacci levels to understand potential price resistance as Bitcoin pushes higher. Keith Alan, co-founder of Material Indicators, noted that Bitcoin’s recent price surge faced resistance at the 1.618 Fibonacci retracement level, which corresponds to the previous all-time highs set in 2021.

Alan cautioned that if Bitcoin bulls manage to push past this resistance, the next levels of resistance would be clearly defined by Fibonacci retracement levels. These include $110,000 and $122,500—levels already mentioned in the context of the cup and handle formation. Beyond these, Alan sees a potential "glass ceiling" in the form of the lower end of Bitcoin's lifetime channel, which could cap price discovery at between $120,000 and $125,000. Depending on the timing of the move, Alan believes that Bitcoin could eventually target technical resistance levels at the 2.618, 3.618, or even the 4.618 Fibonacci levels.

What’s Next for Bitcoin?

As Bitcoin remains above $100,000, traders and analysts are increasingly optimistic about its prospects. The combination of a potential cup and handle breakout, a weakening head and shoulders pattern, and Fibonacci resistance levels suggest that Bitcoin could continue its upward trajectory in the near future. While there may be short-term retracements, the overall market sentiment points toward a strong bull run, with price targets ranging from $116,000 to $140,000 in the coming months.

Ultimately, Bitcoin’s path forward will depend on its ability to break through key resistance levels. With the market’s attention now focused on these technical patterns, it will be interesting to see whether the bulls can sustain momentum and push Bitcoin to new all-time highs.