Bitcoin‘s price struggled to maintain its upward momentum despite surpassing $62,000 in August. However, an analyst believes Bitcoin is approaching a potential breakout leading to six-digit prices. Independent technical analyst Gert van Lagen is confident that Bitcoin’s current price movement will have an explosive outcome.
Notable Development in Bitcoin Chart
In an August 27 post, van Lagen highlighted the formation of a parabolic curve as Bitcoin continues to rise in a step-like pattern. The chart also reveals the formation of a rare Cup and Handle (CnH) pattern on the weekly chart. The pattern has been developing over nearly three years, dating back to October 2021. Access COINTURK FINANCE to get the latest financial and business news.
Will the CnH Pattern Lead to a Breakout?
A successful breakout from a CnH pattern can trigger a parabolic rise, as the model confirms a trend base and higher side consolidation during its development. According to popular analyst Tom Bulkowski, the success rate of a CnH pattern is high at 95%. The first layer of the parabolic curve formed at the market bottom on November 1, 2022. The recovery from $15,460 to $25,290 confirmed the second step, and Bitcoin’s horizontal consolidation between $30,000 and $25,000 from April 2023 to September 2023 led to the third step.
Bitcoin experienced its first parabolic rise of 198%, reaching a new all-time high of $73,737 in March 2024. Recently, the BTC/USD chart has shown the formation of the fourth base, the final stage of the parabolic curve, which is also the handle part of the CnH model. As Bitcoin approaches a breakout, the analyst expects its steepest rise or a blow-off top rally, targeting a price above $260,000 by the end of 2024, representing a 312% gain from current prices.
How Will Bitcoin’s Surge Affect Investors?
When Bitcoin’s price surpasses the previous all-time high range above $70,000, it will have several implications for futures investors. Data from Coinglass shows a significant liquidation event at $70,493. Short-term liquidations at this price reached $7.18 billion as of August 27. Additionally, another $6.54 billion in short positions will be liquidated at $72,581, indicating that the futures market remains strongly positioned among both bullish and bearish investors.
Actionable Insights
– Investors should monitor Bitcoin’s price closely as it nears key resistance levels above $70,000.
– Significant liquidation events could create volatility; consider adjusting stop-loss orders accordingly.
– The Cup and Handle pattern’s high success rate suggests potential opportunities for strategic long positions.
– Current market conditions show a strong bullish sentiment, with 57.19% of accounts long.
– Be prepared for both upward and downward market movements, maintaining a balanced investment strategy.
Conclusion
In summary, Bitcoin’s current technical indicators suggest a potential breakout to six-digit prices. Analysts remain optimistic about Bitcoin’s future, with targets set above $260,000 by the end of 2024. However, investors should remain vigilant and strategically plan for market fluctuations.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.
Source: https://en.bitcoinhaber.net/analyst-foresees-bitcoin-reaching-six-digit-prices