- Bitcoin is near $117K resistance after forming a perfect cup and handle pattern .
- September Fed meetings usually spark Bitcoin rallies no matter what rate decision comes.
- BTC dominance climbs setting Bitcoin up to lead the next market recovery wave
The crypto king sits on a powder keg at $117,000. Bitcoin’s textbook cup and handle pattern is primed to explode, potentially delivering massive gains to $126,700.
Chart Pattern Shows Strong Setup
Bitcoin is trading right at a key spot after forming what traders call a cup and handle pattern. This setup is sitting just below the important $117,000 level that needs to break for the next big move up.
The “cup” part happened over several weeks. Bitcoin dropped to around $106,000, then slowly climbed back up in a smooth curve. This steady recovery looks different from the wild swings we usually see during bad markets. Instead, it shows that serious investors have been buying.
Now we’re in the “handle” part where Bitcoin takes a breather just below the top of the cup. This pause lets nervous sellers get out while strong buyers stack up more coins.
The pattern points to a price target of $126,700 if it breaks out properly. That’s about an 8.5% gain from where Bitcoin trades now. But this only works if Bitcoin can break through $117,000 with heavy trading volume .
Fed Meeting Could Spark Rally
Today’s Federal Reserve meeting might be the spark Bitcoin needs. Looking back at history, September Fed meetings have pushed Bitcoin higher since 2020. The only exception was during the 2022 bear market when everything was falling.
What’s interesting is that the actual rate decision doesn’t seem to matter much. Whether the Fed cuts rates or keeps them the same, Bitcoin tends to rally afterward. This has more to do with timing than the news itself.
Crypto traders have a saying called “Uptober” because October usually brings good gains. This September was different though. Bitcoin didn’t see a selloff like what happened from 2020 to 2023. Those drops always came before massive rallies.
Money Flowing Back to Bitcoin
Right now, money is moving back into Bitcoin from smaller cryptocurrencies. This shift usually happens before Bitcoin makes big moves to new highs. The trend suggests Bitcoin will lead the next rally while other coins lag behind.
This rotation should continue through October. Bitcoin will likely hit new record highs first. After that, money will flow back into smaller coins during what many call “alt season.”
The next few hours matter a lot. Traders are watching to see if Bitcoin can close above $117,000 and complete this textbook pattern.
