Bitcoin soared past the $109,000 mark today, posting a 3.28% gain and triggering what analysts are calling a textbook “Cup and Handle” breakout. The action marked the biggest breakout expression in the dominant cryptocurrency since early May and could lead to a fresh all-time high.

A consolidation period is followed by a breakout with a clear bullish chart pattern. A bottom development through March-May, and a squeezing of the handle through June, has led to a capitulation push above the important $107,000 resistance level. With the breakout comes a significant increase in the trading volume, which further amplifies the bullish mood in the market.

Cup and Handle Targets $168,000 BTC

The market players have begun paying close attention to the possibility of a breakout above the psychological price point of $110,000 per single BTC, clearing a daily close above that point to break the barrier. Relative Strength Index (RSI) is still below 60, which means it has the potential to gain more before moving into the overbought zone.

According to the technical formation, a breakout will likely lead to the projection of the Bitcoin to approximately the value of $168,000, based on the depth of the Cup and Handle estimation of 50%.

Bitcoin Surges Past $109,000, Signaling Major Bullish Breakout

To support the bullish train, even macro indicators are falling into place. M2 money supply is a worldwide measure of liquidity consisting of cash, deposits, and mutual funds, which have surged to an all time high of 21.94 trillion dollars. In the past, Bitcoin exhibited a tendency to correlate with growth in M2 with a delay of 12 weeks, hinting further upside.

Spot Bitcoin ETFs See Strong Demand

Analyst and influencer Collin Talks Crypto chimed in earlier today, noting other bullish signs on the chart. That is an Inverse Head and Shoulders towards $150,000, a Bull Flag pattern to indicate the continuation of the trend after the consolidation, and a bullish pennant that indicates the breaking out of the symmetrical price movement.

Bitcoin Surges Past $109,000, Signaling Major Bullish Breakout

The bullish case also conforms to on-chain information. According to analytics company Glassnode, most Bitcoin owners have returned to profitability since the latest explosion. However, interestingly, long-term holders are not in a hurry to sell, and realized profitability is low, meaning confidence in price gains in the future.

Bitcoin Surges Past $109,000, Signaling Major Bullish Breakout

In the meantime, institutional interest still serves as a fair tailwind. In addition, the current rally has been complemented by consistent inflows to spot Bitcoin ETFs throughout June.

Acting like a potential psychological threshold area at the $110,000 mark, any sustained break higher would leave the prospects of intermediate targets at the $116,000 level and possibly the outer reaches of the $168,000 range as the Cup and Handle configuration nears completion.