- Bitcoin is forming a bullish cup and handle, and it is already undergoing a breakout.
- Price is now consolidating above the key level of 106K and targeting a breakout over 110K.
- Corporate ownership of Bitcoin is increasing, with top company holders having a combined amount of more than 818,000 BTC.
Bitcoin ($BTC) is experiencing a textbook cup and handle breakout on the weekly chart, and analysts are predicting a bullish continuation, which will see the price rise to 320,000. The formation, which started at the end of 2021, looks like one of the strongest bullish technical patterns in the history of the crypto market. The breakout has already started, and the pole-measured target is above the previous all-time highs by a wide margin, according to Bitcoinsensus.
The handle phase, which consolidated just below $70,000, appears to have settled upwards. The well-formed structure shows how persuasive long-term holders are. Bitcoin has revisited important historical resistances and is gaining traction towards the next leg up.
Market Structure Faces Short-Term Decision Point
Although the long-term setup is bullish, Bitcoin has been struggling against an important structural level of about $106,000 in the short term. According to TitanOfCrypto, this range is an essential bullish maintain area on the weekly chart. A strong higher closing above this threshold is necessary for Bitcoin. Any sustained drop below could invite a short-term downside and delay breakout confirmation.
The more recent price rejections around the area of $110,000 have resulted in the smaller dips of 5.8% of the latest pullback, compared to 8% in the previous one. Analyst Rekt Capital said this action shows increasingly higher lows, a sign of diminishing overhead resistance. An upside break above the 110K mark would strengthen the bullish trend and potentially speed up the movement toward the price targets in the six-figure range.
Traders React to Volatility, Take Long Positions
Rising confidence among traders is also seen in the activity in the market. Based on Santiment, most participants in the Bitcoin market are taking a long position in the market following recent declines in price. Prices have stabilized, and shorts are being seen at the rise of bearish sentiment. In comparison, Ethereum is experiencing short bias, with traders trading around price movements in the near future.
In the meantime, macro investor Raoul Pal stressed that Bitcoin is in a long-term trend with global liquidity flows. According to him, Bitcoin price movement is mostly driven by the global M2 supply, which makes up 89% of Bitcoin price action, making the short-term narrative less relevant.
Consolidation of Bitcoin and the confirmation of bullish technical developments on various time frames point to a solid argument that we could be on the way to a significant rally. However, a breakout above $110K is nevertheless the imminent challenge ahead of bigger price targets that are possible to explore.
Corporate Bitcoin Holdings Expand
The number of companies using Bitcoin in their portfolio of assets to diversify their balance sheets is on the increase, leading to the formation of Bitcoin treasuries. According to HODL15Capital data, the largest 100 corporate owners now control more than 818,000 BTC. Out of them, 20 companies in the recent past have increased their Bitcoin reserves.
MicroStrategy is the largest non-corporate holder, as it holds 582,000 BTC. Marathon Digital and TwentyOne have 49,179 and 37,230 BTC after that. The increase in the institutional trend emphasizes the increased confidence in Bitcoin as a store of value.
