Bitcoin shows signs of recovery, supported by decreasing exchange reserves and technical trends. Analysts suggest BTC might surpass its ATH and explore new price ranges.
'Cup and Handle' Pattern Shows Strength
From 2021 to 2024, a 'Cup and Handle' pattern emerges in Bitcoin's weekly price movement. The fall from $69,000 in late 2021 to $15,000 in late 2022 created the rounded bottom. Prices then gradually rebounded to $69,000 by mid-2023. The handle phase, characterized by a mild pullback, concluded with a breakout, pushing Bitcoin past $90,000 by early 2025.
Exchange Reserves Drop as Prices Climb
Bitcoin's exchange reserves started declining in early 2024, signaling long-term holding practice. This drop from 2.95 million BTC to 2.45 million BTC by January 2025 coincided with rising prices. This trend supports a bullish outlook, emphasizing reduced liquidity on exchanges. The fall below 2.7 million BTC by late 2024 spurred market activity, driving prices close to $100,000.
Bitcoin Outlook: Analysts' Perspective
Analysts consider Bitcoin's current correction phase temporary. The positive interaction between technical patterns and on-chain metrics highlights a favorable outlook. Market participants remain optimistic, expecting BTC to surpass its ATH and achieve the $110,000 mark in the coming months.
Amid strengthened bullish momentum, Bitcoin continues to draw attention from analysts and investors. The 'Cup and Handle' pattern, declining reserves, and technical metrics support the cryptocurrency's growth in 2025.
