Cup and Handle Pattern Signals Potential Surge

At 8 a.m. Eastern time, bitcoin is trading at $104,881 to $105,266 over the past hour, with a market capitalization of $2.08 trillion and a 24-hour trading volume of $24.93 billion. The 24-hour intraday price range spanned from $103,655 to $105,213, reflecting a tightly wound consolidation phase ahead of a potential breakout.

Bitcoin

The daily chart indicates that bitcoin is in a consolidation phase after peaking near $112,000. This level formed a double top, which triggered a pullback toward the psychological support at $100,000. Despite this decline, the support structure remains intact, with notable buy interest re-emerging near $102,000. Oscillators on the daily timeframe paint a mixed picture, with the relative strength index (RSI) at 52 and the commodity channel index (CCI) at -59, both signaling neutral momentum. A bearish engulfing pattern, however, continues to weigh on sentiment, even as the declining volume suggests that selling pressure may be weakening.

In the intermediate term, the 4-hour bitcoin chart reveals a dynamic rebound. Following a sharp correction to $100,426 after being rejected near $106,854, bitcoin swiftly recovered to the $105,000 range. The resurgence was supported by a green volume spike, pointing to strong dip-buying activity. Currently, bitcoin appears to be forming a bullish flag or pennant pattern just below resistance. A breakout above $105,500 with substantial volume could open the door toward the $107,000 level, while failure to sustain above $102,000 would threaten deeper retracement.

BTC/USD 4-hour chart via Bitstamp on June 7, 2025.

From a short-term perspective, the 1-hour bitcoin chart exhibits a stair-step rally from $101,159 to $105,416, followed by a modest pullback. This upward movement was underpinned by high buying volume, which has since cooled, hinting at temporary indecision. The chart shows a potential cup and handle pattern forming, with firm support at $103,500 and $104,200. A breakout above $105,500 from the handle formation, validated by volume, could drive a rapid advance toward $106,500–$107,000 in intraday trading.

BTC/USD 1-hour chart via Bitstamp on June 7, 2025.

Oscillator signals are largely neutral across timeframes, though a few outliers are worth noting. The awesome oscillator currently reads −56, issuing a sell signal, while the momentum indicator stands at −2,797, reflecting a buy. The moving average convergence divergence (MACD) level is 728 and tilts bearish.

Moving averages (MAs) present a similarly nuanced landscape: the exponential moving averages (EMAs) from the 10-period to 200-period are all bullish, with the 10-period EMA at $104,953 and the 200-period EMA at $91,614. However, the 20-, 30-period simple moving averages (SMAs) lean bearish, indicating mixed medium-term pressure.

Bull Verdict:

bitcoin continues to demonstrate resilience above key support levels, with strong buy-the-dip behavior and bullish technical setups across multiple timeframes. If it successfully breaks above $105,500 with volume, a rally toward $107,000 and potentially back to $112,000 remains viable, especially given the solid foundation shown in both exponential moving averages (EMAs) and momentum patterns.

Bear Verdict:

Despite holding above $100,000, the presence of bearish signals such as the awesome oscillator and moving average convergence divergence (MACD) sell indicators, combined with resistance near $106,000–$107,000, suggests upside may be capped. A breakdown below $102,000—especially if volume increases—could trigger a deeper retracement toward $96,000–$98,000, undermining the current bullish structure.