Bitcoin Surges to $100K—Is $140K the Next Target?

Bitcoin (BTC) continues its upward momentum, trading at $100,732 with a 1.71% gain in the past 24 hours and a 7.16% increase over the last seven days. 

With a circulating supply of 20 million BTC, the cryptocurrency’s market capitalization now stands at $1.996 trillion, supported by a 24-hour trading volume of $51.22 billion.

As Bitcoin moves toward six-figure valuations, previously bearish patterns such as the “head and shoulders” reversal appear to be weakening, fueling bullish sentiment among traders.

Head and Shoulders Reversal Under Threat

The “head and shoulders” pattern on the daily BTC/USD chart, which suggested a bearish reversal, may no longer hold. This pattern, typically seen in three peaks—two lower shoulders flanking a higher head—was forming with Bitcoin’s all-time high of $108,000 as the head.

According to analyst Aksel Kibar, Bitcoin is now testing the high of the potential right shoulder. “Breach can result in a pattern negation and should be considered bullish,” Kibar stated, adding that if the pattern fails, the next price target would stand at $116,000.

However, Kibar also noted that even if the bearish pattern succeeds, pushing Bitcoin down to $80,000, it could still be part of a pullback within the larger bullish structure following the breakout above $73,800.

Cup and Handle Formation Brings $140K Target Into View

Another technical setup gaining attention is the “cup and handle” formation, traditionally associated with bullish continuation. After retracing near $90,000 on multiple occasions, Bitcoin has regained momentum, fueling optimism among traders.

Trader Jelle recently stated on X, “Bitcoin looks ripe to complete the cup & handle formation,” projecting a potential upside target of $140,000 if the pattern plays out as expected. This setup reflects the cryptocurrency’s ongoing recovery and its potential for further price growth.

Bitcoin Decouples from the S&P 500

According to Santiment, Bitcoin is beginning to break away from its recent correlation with the S&P 500. While BTC posted a 3.7% daily gain, the S&P 500 rose by only 0.4%, signaling divergence. 

“For most of the past three years, cryptocurrency has been perceived as a ‘high-leveraged tech stock,’ but current data suggests that BTC may break away from stock market fluctuations,” Santiment stated.

📊 Crypto and equities have had a fairly high correlation to one another ever since Trump's selection as the 47th US President two months ago. Today, however, we're beginning to see Bitcoin surge ahead of the S&P 500 (relative to their normal fluctuations).

For most of the past… pic.twitter.com/y4dWSYQsEt

— Santiment (@santimentfeed) January 6, 2025

Historically, Bitcoin’s strongest bull markets have occurred when its correlation with equities diminishes. Analysts believe this divergence could pave the way for new all-time highs if Bitcoin continues to thrive independently of macroeconomic trends affecting traditional markets.

Bitcoin’s current price movement and emerging chart patterns suggest potential bullish outcomes, with traders eyeing targets of $116,000 and $140,000. While risks remain, market participants are optimistic about the cryptocurrency’s ability to maintain its upward momentum in early 2025.

FAQs

What is Bitcoin’s current price and market cap?

Bitcoin is trading at $100,732 with a market cap of $1.996 trillion as of now.

What price targets are analysts predicting for Bitcoin?

Analysts are targeting $116,000 and $140,000, based on technical patterns like the “head and shoulders” and “cup and handle.”

How is Bitcoin performing compared to the S&P 500?

Bitcoin is outperforming the S&P 500, posting a 3.7% daily gain compared to the S&P’s 0.4% increase.