Bitcoin shows the same pattern as 2021 while trading near $105K and could revisit $98K support level soon
The current chart points to a possible cup and handle setup with $112K acting as the upper resistance
Traders now wait to see if Bitcoin makes a higher low or drops below $98K in the coming days
Bitcoin (BTC) is mirroring its late 2020 to early 2021 cycle, sparking discussions about whether a similar breakout is unfolding. At $105,744, BTC is trading near critical levels, aligning with the orange upper trendline, which has historically triggered strong rejections. Market analysts are closely monitoring this zone to assess if the digital asset can build a lower high and complete a cup-and-handle formation.
Source: X Key Levels and Fibonacci Zones Indicate Decision Point Ahead
BTC’s recent price action shows strong alignment with the previous cycle, particularly the 2021 pre-pump and correction phase. The current model tracks BTC’s formation of a rounded bottom and a possible handle, similar to the 2020-2021 pattern. The orange resistance trendline, identified around $112,309, remains a key long-term ceiling.
Retracement levels drawn from the recent local top to bottom place immediate support at the 0.382 Fibonacci level, or $98,084.93. Additional retracement zones appear at $93,690.86 (0.5) and $89,296.84 (0.618). These levels represent potential consolidation areas if BTC faces rejection near the top.
The presence of a green support band below the current price suggests that the asset might retest the $98,000 region before continuation. Consequently, any failure to maintain current momentum could result in a corrective phase targeting these lower Fibonacci thresholds.
RSI Divergence Sparks Momentum Questions as Traders Watch $105K
The Relative Strength Index (RSI) on the 4-hour chart hovers around 51.17, indicating neutral market momentum. However, bearish divergence is visible as RSI makes lower highs against BTC’s price highs, often signaling weakening momentum. This divergence increases the possibility of a short-term pullback.
Despite this, the structure of BTC’s price action still supports a bullish setup. The recent rejection from the orange line marks a repeat of historical behavior seen during BTC’s previous cycle. The market’s ability to maintain higher lows within this formation reinforces the possibility of a breakout pattern forming.
Meanwhile, BTC’s price action remains contained within a tightening structure, bordered by the green long-term support trendline and a shorter-term descending channel. As BTC tests the channel's upper boundary, the crypto community awaits confirmation of a breakout or renewed consolidation.
Will BTC Break the Orange Trendline or Revisit Support Below $98K?
This setup leaves traders and analysts asking a pivotal question: Will BTC breach the orange resistance line and sustain new highs, or face another rejection?
The long-term trajectory remains bullish, given BTC’s historical tendency to surge after completing a rounded base pattern. However, short-term risks remain, particularly if BTC fails to build a clear higher low above $98,000. Observers are watching closely for further handle formation, as this would signal accumulation before another upward leg.
The chart, shared by crypto analyst TommyJR, suggests BTC could gather strength above the $98,000 mark before a breakout. His model outlines a breakout scenario once BTC stabilizes from the cup-and-handle pattern, mimicking the 2021 rally.
