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A crypto analyst has predicted a significant upside breakout for Bitcoin, drawing parallels with similar breakouts in traditional assets towards the Gold Price and the S&P500. According to a technical analysis of the current price action, Bitcoin is playing out a cup-and-handle pattern, which could drive it rising to bullish price targets above $230,000.
Bitcoin cup and handle cascade
According to a technical analysis, on the largest time frame, Bitcoin appears to be forming a textbook cup-and-handle pattern, which is a bullish continuation pattern that often leads to a large price increase. This formation typically signals a period of consolidation followed by a breakout to the upside, and if the pattern plays out in full, Bitcoin could soar to new highs.
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In a recent analysis shared on On the social media platform handle experienced, eventually leading to a full-scale bull rally in 2023. This breakout pushed gold to new highs, which have continued up to the time of writing, with gold now trading above $2,730 in its history.
Similarly, the analyst highlighted a similar cup-and-handle pattern in the SP500, which ultimately led to a rally that took off in late 2023 and culminated in new highs for the index.
Van Lagen highlighted that Bitcoin has been showing a similar pattern since the 2022 bear market. The “cup” portion of the formation was completed when Bitcoin reached its all-time high in March. Now Bitcoin is forming the ‘handle’ part of the pattern, just like the cryptocurrency but has yet to reach its all-time high during the past seven months.
Should the formation come to an end and a breakout occur, Bitcoin could be on the cusp of a strong rally, much like what Gold and the S&P 500 experienced during their respective runs.
BTC to $230,000
According to van Lagen, Bitcoin is “poised to follow the structural path of SP500 and Gold.” In terms of a price target, he predicted a price target of $230,000 for Bitcoin.
At the time of writing, Bitcoin is trading at $67,350. Reaching the $230,000 price level would necessitate a 197% price increase from the current price.
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Interestingly, Van Lagen’s prediction is just one of many bullish prospects resurfacing as Bitcoin’s price has shown positive momentum. since the second week of October. Bitcoin is up about 13.5% from $59,500 on October 10, leading to a return of bullish sentiment.
According to a report, this has led to an increase in Bitcoin accumulation by long-term holdersthat now endure 2.9 million BTC. Another analyst noted that Bitcoin is on its way to doubling in value and reach $130,000 by January 2025
Featured image created with Dall.E, chart from Tradingview.com