TL;DR

Bitcoin recovered to $57,000 after dipping below $54,000, with analysts predicting a potential bull run up to $123,000. Positive indicators include reduced selling pressure and a favorable Relative Strength Index (RSI).

BTC Ready to Fly Again?

The last several days have been painful for Bitcoin bulls, with the assets price briefly plunging below $54,000 for the first time in five months. It recovered some of the losses over the weekend and is currently trading at around $57,000 (per Coingeckos data), a 9% decline on a weekly scale.

Despite the unsatisfactory performance as of late, multiple industry participants believe another bull run could be on the horizon. The X user BATMAN said BTCs price chart is forming a massive cup and handle pattern. 

If this pattern plays out as expected, the target price for Bitcoin is $123K, suggesting substantial upside from current levels, the analyst predicted.

The cup and handle is a technical chart pattern commonly used to identify potential bullish moments in various markets, including cryptocurrencies. The cup resembles a U shape, signaling a period of consolidation or a rounded bottom. The handle follows next, usually taking the form of a downward-sloping channel. Some traders believe that the appearance of the formation could indicate a great buying opportunity.

Mikybull Crypto was also optimistic, arguing that BTC 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.

Bullish Indicators

Two important metrics suggest that BTC might head north in the short sun. The first is the exchange netflow, which has been predominantly negative in the past month. The move indicates a shift from centralized platforms toward self-custody methods and is considered bullish because it reduces the immediate selling pressure. 

The other indicator is Bitcoins Relative Strength Index (RSI), which checks whether the asset is oversold or overbought. It varies from 0 to 100 as a ratio above 70 signals about a possible correction. The RSI is currently set at 48, staying below the aforementioned mark since the start of the month.

BTC RSI, Source: Crypto Waves