According to CryptoPotato, Bitcoin has recovered to $57,000 after a dip below $54,000, with analysts predicting a potential bull run that could reach up to $123,000. This recovery comes after a challenging period for Bitcoin bulls, as the asset's price briefly plunged below $54,000 for the first time in five months. Despite this, the cryptocurrency managed to recover some of its losses over the weekend and is currently trading at around $57,000, marking a 9% decline on a weekly scale.
Several industry participants believe another bull run could be on the horizon. One analyst, known as BATMAN, suggested that Bitcoin's price chart is forming 'a massive cup and handle pattern.' This pattern, if it plays out as expected, could see Bitcoin's target price reach $123,000, indicating a substantial upside from current levels. The 'cup and handle' is a technical chart pattern often used to identify potential bullish moments in various markets, including cryptocurrencies. The 'cup' signals a period of consolidation or a rounded bottom, followed by the 'handle,' typically a downward-sloping channel. Some traders believe that the appearance of this formation could indicate a great buying opportunity.
Another analyst, Mikybull Crypto, was also optimistic, arguing that Bitcoin 'tends to surprise the masses when it seems all is over.' The analyst compared the current price performance to the one from 2019, forecasting a rally to as high as $100,000 before the end of 2024.
Two important metrics suggest that Bitcoin might head north in the short term. The first is the exchange netflow, which has been predominantly negative in the past month. This shift from centralized platforms toward self-custody methods is considered bullish as it reduces the immediate selling pressure. The other indicator is Bitcoin's Relative Strength Index (RSI), which checks whether the asset is oversold or overbought. The RSI is currently set at 48, staying below the mark of 70 since the start of the month, which signals about a possible correction.