Bitcoin Breaks Out of Cup-And-Handle Pattern, Eyes $276,000 Target

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Bitcoin, the most prominent cryptocurrency, once again surged in the cryptocurrency market surge, picking up speed on Friday following rumors that incoming U.S. President Donald Trump could potentially issue an executive order to emphasize the importance of digital currencies shortly after assuming office.

According to the most recent stats from CoinGecko, Bitcoin experienced a nearly 5% jump in just 24 hours, peaking at around $104,000. Meanwhile, the overall cryptocurrency market, as indicated by the CoinDesk 20 index, also registered an increase, climbing 1%, having risen by 4% the previous day.

Excitement Builds Ahead Of Trump’s Executive Orders 

The growing curiosity about Bitcoin has boosted the profits for exchange operators, as stocks for companies like Coinbase and Robinhood have increased by around 5% and 3% respectively.

Based on a report by CNBC, there’s growing anticipation following a Bloomberg article suggesting that Donald Trump may form a cryptocurrency advisory committee as he had pledged earlier, which could significantly amplify the crypto industry’s influence within his administration.

Reports indicate that talks about establishing a national reserve for Bitcoin are included in the upcoming executive order, an action that’s likely to delve into multiple facets of cryptocurrency regulations, as per The New York Times.

The idea of a government supportive of cryptocurrencies and a pro-crypto Congress in 2025 might boost the industry, but it’s important to note that the effects might not be noticeable right away according to some financial analysts from Wall Street.

It appears that smaller cryptocurrencies and coins other than Bitcoin might gain the most from straightforward and favorable regulations, given their increased exposure to Securities and Exchange Commission (SEC) litigation and perceived banking bias during the previous administration.

Analysts Eye Record-Breaking Bitcoin Prices 

This year, Bitcoin’s performance has mirrored the stock market trends significantly, after a phase starting from late December where it showed signs of stabilization and consolidation.

Following the worries expressed by Federal Reserve Chair Jerome Powell regarding inflation, there has been a noticeable relaxation of these concerns due to two positive inflation reports received in January.

It’s anticipated that announcements from the upcoming administration next week might further boost Bitcoin’s value, possibly establishing new price peaks.

Or simply:

The upcoming administration’s announcements next week may cause Bitcoin’s price to rise even more, potentially reaching new highs.

As a crypto investor, I’m excited about the potential changes that a new administration and a new SEC chairman might bring to the crypto space. There’s a strong possibility that these developments could open up new avenues for innovation.

According to analyst Kenneth Worthington from JPMorgan, although the conditions appear favorable, the existing market value of other digital currencies and reduced investor enthusiasm could potentially restrict the influence of newly launched cryptocurrency offerings.

Recently, cryptocurrency expert Ali Martinez noted an optimistic technological advancement: Bitcoin appears to have burst free from a ‘cup-and-handle’ pattern, which is generally considered a positive sign in technical analysis.

This particular shape is similar to what’s often called a “cup” along with a subsequent downward slope, usually indicating a chance for investors to buy. As per Martinez’s analysis, this could mean a potential increase in Bitcoin’s value up to $276,400, surpassing its previous high of $108,000 set at the end of last year by more than double.

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2025-01-17 20:47