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The Bitcoin price has done just that finally broke through the resistance and is on its way to the $320,000 threshold, according to a crypto analyst. Notably, the Bitcoin price has now returned to a fully bullish sentiment, with the crypto fear and greed index now indicates extreme greed.
In a recent technical analysis, crypto analyst Gert van Lagen identified a bullish pattern on Bitcoin’s price chart, specifically pointing to a confirmed breakout of the classic cup-and-handle pattern formation that essentially marked a bullish Wave 5 run has kicked off.
Bitcoin price sets its sights on $320,000 as wave 5 begins
Bitcoin’s price action has been downright impressive in recent days. The Bitcoin price in particular has done this created multiple all-time highs in quick succession, while many investors begin to flock in. This continued demand has created consecutive bullish candles on both the daily and weekly charts, illustrating continued strong upward momentum.
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Interestingly, these bullish candle formations have confirmed what crypto analyst Gert van Lagen is claiming called the beginning of a subwave 5 formation. This wave, which is known to be bullish, is expected to be the last sub-wave formation in a larger uptrend of the Elliot wave that has been ongoing since January 2023.
The technical analysis of Bitcoin price formation supports the possibility of the wave 5 formation and shows that the recent price rally has caused Bitcoin to break out of a cup-and-handle formation. This pattern, known to be bullish, has emerged since 2022. The ‘cup’ portion of this pattern began forming in early 2022 and eventually ended with Bitcoin peaking above $73,700 in March 2024. The subsequent consolidation phase , which lasted until October represents the ‘handle’ segment of the pattern.
In addition, Bitcoin has managed to break free from what Van Lagen described as a “step-by-step base 4 formation,” effectively shaking off a bear trap. With this breakout now confirmed, Van Lagen’s analysis points to an expected target range between $220,000 and $320,000. This range marks what he considers a “major sell line,” an area where profit-taking could increase as Bitcoin reaches these upper limits.
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Current state of BTC
At the time of writing, Bitcoin is trading at $89,500, with a market cap of $1.77 trillion and an all-time high of $89,864, after rising about 10.5% in the past 24 hours. However, given this trend, this is a record high may not last long. The bullish sentiment and inflows surrounding Bitcoin have been so great that investors don’t know when to take profits at this moment. The RSI is above 70 on every time frame from daily to annual. This shows how strong the buying momentum is is at this moment.
Nevertheless, the momentum is expected to continue, with the next target at $90,000 and another at $100,000. A move to Gert van Lagen’s target of $220,000 to $320,000 represents an increase of 145% and 255% respectively from the current price.
Featured image created with Dall.E, chart from Tradingview.com