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Bitcoin price movements have recently formed a bullish symmetrical triangle pattern, a technical indicator that often precedes significant upward momentum. This patterning has come in the midst of back and forth between $93,477 and $85,970 after the Bitcoin price hit an all-time high of $93,477 on November 14.
The observation of this bullish symmetrical triangle was highlighted on the social media platform X by the crypto analyst known as Stockmoney Lizards, who is also credited with developing the Satoshimeter indicator.
Symmetrical triangle indicates a Bitcoin price breakout
A symmetrical triangle is formed when a falling resistance line meets a rising support line, signaling a period of consolidation. As the price approaches the top of this formation, it typically breaks out in the direction of the prevailing trend.
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In the case of Bitcoin, Bitcoin price action on the daily candlestick time frame over the past week was one of a series of lower highs and higher lows. This formation has led to Bitcoin prices trading in an increasingly tight range, which will eventually break out in either direction.
For Bitcoin, the existing uptrend suggests a potential break above the upper trendline of the symmetrical triangle, which is just below $91,000. To confirm such a breakout, analysts look for a spike in trading volume and at least two consecutive closes beyond the trendline.
In response to this scheme, the Stockmoney Lizards declared“The current setup suggests a potential breakthrough to the next level. All eyes are on 100k. This is when retail investors will crush the candy store and the real fun will begin.”
If such a breakout is confirmed, Bitcoin could reach new highs above the six-figure threshold of $100,000, which would in turn trigger a wave of inflows into other cryptocurrencies.
Next Bitcoin price target: $100,000
The psychological milestone of $100,000 has been a point of attention for Bitcoin enthusiasts and analysts since the beginning of this bull cycle. Notably, calls for a $100,000 price target have become even more apparent since the Bitcoin price rose above its March high of $73,737 earlier this month.
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At the time of writing, Bitcoin is trading at $91,770, having reached an intraday high of $92,653 in the past 24 hours. This means that since Stockmoney Lizards technical analysis, it has effectively broken out of the symmetrical triangle. Interestingly, the analyst highlighted this breakout in an update to his analysis.
Now that the breakout of the symmetrical triangle has been effectively confirmed, it remains to be seen whether the Bitcoin price can reach the coveted $100,000 price before the end of November. All indicators point to the need to go furtherwith the current demand for Bitcoin far exceed the offer.
Featured image created with Dall.E, chart from Tradingview.com