- Bitcoin analysts have identified the formation of a “cup and handle” in BTC’s daily price chart, with a minimum target of $35,000.
- Experts have identified April as the month when Bitcoin tests resistance at the $30,000 level, and $32,000, the key support from January 2022.
- Bitcoin on-chain activity has increased as sharks and retail investors accumulate BTC, and the asset is getting re-distributed.
Bitcoin has emerged as one of the assets with the highest yield for holders in 2023. With BTC dominance rising, analysts are bullish on the digital asset’s comeback to the $35,000 level.
Experts believe the January 2022 support at $32,000 could get re-tested in April and set a minimum target of $35,000 for the Bitcoin price. A range of on-chain metrics supports the bullish thesis for Bitcoin.
Also read: Why Vitalik Buterin is bullish on ZK coins
Bitcoin chart reveals formation of “cup and handle,” what to expect
Jackis, a trader and crypto analyst, identified a “cup and handle” formation on Bitcoin’s one-day price chart. While the “cup and handle” formation is not a classical chart pattern, Jackis argues that fitting the current BTC structure in it sets a target of $35,000 for the Bitcoin price.
The analyst believes a clean break above the $32,500 high would set BTC up for a rally to the $35,000 target.
BTC/USD 1D price chart
The cup and handle formation indicates an asset’s price movement in cup form, followed by a downtrend, a handle formation. When the handle formation is complete, it is typically followed by a new all-time high in the asset’s price.
Bitcoin supply redistribution to retail investors holding between 0.1 to 10 BTC is considered a bullish signal. Accumulation of the asset by retail investors is a bullish sign. While large wallet investors and whales are engaging in profit-taking, the asset is redistributed to retail investors.
BTC accumulation by retail investors
On-chain metrics supporting Bitcoin adoption and growth
The supply of Bitcoin on exchanges has consistently declined since March 30, based on data from the crypto intelligence tracker Santiment. A decrease in BTC supply on exchanges is bullish as it reduces the volume of Bitcoin available for sale, a reduction in selling pressure on the asset.
Interestingly, the timeline coincides with the decline in whale transactions, greater than $100,000 worth of BTC.
BTC supply on exchanges, whale transaction count and Bitcoin price
Will Bitcoin test $32,000 in April?
Crypto analyst and YouTuber Jason Pizzino believe that the largest asset by market capitalization is following a Wyckoff accumulation pattern. This is a pattern that lasts four phases, and the analyst believes we are in the accumulation phase in BTC. This implies the asset is forming the base for a bull market.
Pizzino believes April is conducive to BTC testing its January 2022 support at $32,000. In his recent YouTube video, Pizzino was quoted as saying:
...I think April may be the month that we come up to test the $30,000 and the low $30,000 area, so about $32,000, which is the previous lows and support of January 2022… That is going to be a key area.
If Pizzino’s thesis is validated, Bitcoin could test the January 2022 support and conquer the level in its uptrend to the $35,000 bullish target.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Ripple's move above this key level could trigger nearly 50% rally for XRP
Ripple has overcome a critical resistance level and flipped into a support floor on the weekly time frame. This development happened while XRP tightly consolidated for roughly 250 days. Investors can expect XRP to kickstart a massive rally.
Optimism price outlook with nearly $90 million worth of OP tokens flooding markets on Friday
Optimism volatility has shrunk in the ours leading to the network’s cliff unlock. It joins the likes of dYdX and Sui, which have similar events on their calendars. As token unlocks are often considered bearish catalysts, investors should brace for a reaction after the event.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Retail watches from the sidelines with a bias for shorts
Bitcoin could clear $73,777 peak as BTC bulls resurface. Ethereum might fall 10% before next leg up as ETH RSI teases with sell signal. XRP could lose $0.6000 threshold as Ripple bulls fail to show up.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito price action shows a potential cup and handle formation. Based on theoretical measurement rules, a successful breakout could yield a 56% rally to $6.0. A breakdown of the $3.86 support level would create a lower low for JTO and invalidate the bullish thesis.
Bitcoin: BTC may have recovered, but is it out of the woods?
Bitcoin’s (BTC) upward momentum has shown a significant decline for the past two weeks or so. This development led to a bearish signal on the weekly and an uncertain outlook on the monthly.