Bitcoin Forms Large Cup-and-Handle Pattern, With Price Target Seen at $220,000

Bitcoin is approaching what analysts describe as a pivotal technical breakout, a development closely watched by traders seeking signs that the cryptocurrency can escape its recent trading range. A confirmed move above resistance, particularly if supported by stronger volume, could attract momentum buyers. Technical patterns, however, indicate probabilities rather than certainties and can fail if demand weakens or broader market sentiment deteriorates.

The latest analysis suggests a confirmed breakout could generate a strong bullish signal and propel Bitcoin toward $76,000. The available report does not identify the analyst or institution, name the specific chart formation, provide Bitcoin’s price at the time, or state a publication date. The $76,000 level should therefore be treated as a conditional technical target rather than a guaranteed forecast.

Bitcoin has struggled to recover from a steep drawdown after peaking near $126,000 in October 2025, repeatedly finding demand around $60,000 in 2026. The latest daily chart is drawing attention because an inverse head-and-shoulders formation can signal that a downtrend is losing force. A sustained move through the neckline would turn months of subdued trading into a potential bullish reversal, while failure to confirm the pattern would leave the broader recovery thesis intact only on paper.

Bitcoin closed near $64,208 on Aug. 6 as the prospective right shoulder continued to develop. A high-volume break above the roughly $66,000-to-$67,000 neckline would confirm the setup and imply a measured target near $76,000. The caveat is that Bitcoin must hold its 50-day moving average around $63,000. Regulatory risk also persists: the U.S. Senate Banking Committee advanced the CLARITY Act by a 15-9 vote on May 14, but its prospects of becoming law in 2026 remain uncertain.

Bitcoin is widely viewed as a volatile risk asset, and its price often moves in tandem with U.S. technology stocks and the Nasdaq. The $60,000 level is both a key psychological threshold and an important test of whether the bullish structure can endure. Analysts also use the 200-week moving average as a major technical gauge of the long-term trend.

Over a recent weekend, Bitcoin held above $60,000 and showed relative resilience despite a marked decline in the Nasdaq, raising expectations that risk capital could return. Analysts said that if BTC continues to hold firmly above its 200-week moving average, it could first test $70,000 and then potentially reach $92,630.

A bullish divergence occurs when prices continue to make new lows while the relative strength index, or RSI, moves higher, suggesting that selling pressure may be easing. Cointelegraph noted that the last time this signal appeared on Bitcoin’s weekly chart was after FTX collapsed in November 2022. Bitcoin then climbed about 715%, from roughly $15,500 to $126,200, drawing attention to the latest signal.

Cointelegraph reported on June 8, 2026, that Bitcoin had fallen from $75,770 to about $63,000 while its weekly RSI recovered from below 30 to above 34. If confirmed, it would be only the second weekly bullish divergence in Bitcoin’s history. Analyst Van de Poppe said a break above $64,000–$65,000 could open the way to the $79,000 CME gap and resistance above $90,000. The 50-week moving-average target is about $91,755.

Bitcoin’s “realized price” reflects holders’ average on-chain cost basis and is widely used to gauge whether investors are willing to defend profitable positions. On-chain analytics firm Glassnode said the cost-basis range for holders who have owned Bitcoin for three to six months has become the short-term dividing line between bulls and bears. A break below it could mean the recent rebound is merely a pause in the decline.

On May 31, 2026, Bitcoin rebounded 2.5% from around $72,500 and recovered to $74,000 on Sunday. Glassnode data identified $71,400 as the key near-term cost-basis support, with the next target at $78,200. Following similar breakouts since 2017, Bitcoin has gained an average of 36.6% over six months, with a 79.2% probability of rising, suggesting it could reach $101,100 by year-end.

Bitcoin reclaimed the $70,000 level as institutional buying through U.S. spot Bitcoin ETFs picked up, bringing some ETF investors close to breakeven. The market views $68,000 as the key medium-term dividing line between bullish and bearish momentum. Whether Bitcoin can hold above it will help determine if the rebound extends into April.

Bitcoin recently traded above $70,000 at one point during the New York session, while U.S. spot Bitcoin ETFs recorded nearly $500 million in net inflows in a single day. Around March 11, analysts said that if the weekly close continued to hold above the $68,000 trendline, a break above $72,000 could quickly propel Bitcoin into the major short-liquidation zone at $80,000.