BTC Breaks Out of Cup Pattern, Targets Fibonacci Extensions

Bitcoin maintains bullish momentum above $106K support, eyeing $108K resistance after a 75% rally from April lows.

Breakout from cup pattern and strong 50-week MA support near $84K signal a robust reversal and potential long-term uptrend.

Fibonacci targets at $120K, $127K, and $137K align with channel highs, suggesting further upside if current resistance breaks.

Bitcoin maintains its position above support levels, indicating strong bullish momentum, according to expert EGRAG CRYPTO. Solidly above $106,400, $104,200, and $102,250 is the weekly candle. The increasing trend of Bitcoin appears to be unaffected as long as these thresholds remain intact. The asset is currently testing resistance close to the $108,802 Fibonacci level, trading at $107,757. Following a 75.10% price increase since April, its value has increased by $46,526. The bullish narrative is supported by the price structure, which consistently shows higher highs and higher lows.

Cup Formation Signals Strong Reversal Potential

Bitcoin recently broke out from a cup-shaped bottom that formed over recent months. This reversal pattern suggests a continuation of the bullish trend. Besides, the base of the pattern aligns closely with the 50-week moving average near $84,000. This yellow line acts as strong technical support. Moreover, the ascending green channel defines a long-term bullish range. A breakout from this structure could lead to further upside.

Source: EGRAG CRYPTO

Additionally, the breakout above historical resistance at $91,618 reflects structural strength. This zone also aligns with the average pump level of $92,000. The breakout confirms strong market conviction, showing that accumulation phases in Q1 2025 provided a solid foundation.

Fibonacci Levels Indicate Strong Upside Targets

Bitcoin has now surpassed the Fibonacci retracement levels of 0.786 and 0.888, which are located around $100,287 and $104,259. Long-term momentum is confirmed by these breakouts. Because of this, $108,802 is the next immediate aim. The emphasis switches to Fibonacci extensions if Bitcoin breaks this barrier. These are $120,677 (1.272), $127,383 (1.414), and $137,674 (1.618).

Moreover, all these levels lie within the upper green channel, providing a dynamic roadmap. The upper resistance trendline acts as a ceiling. However, any breakout above that would signal acceleration toward $130,000.Candlestick patterns from May show strong bullish bodies and minimal wicks. This signals aggressive buying pressure. Furthermore, no bearish divergence is visible, and the 50-week moving average trending upward. Consequently, Bitcoin remains poised for further gains unless a flash crash triggers a short-term shakeout.

The post BTC Breaks Out of Cup Pattern, Targets Fibonacci Extensions appears on Crypto Front News. Visit our website to read more interesting articles about cryptocurrency, blockchain technology, and digital assets.