This article is also available in Spanish.
A cryptocurrency analyst has predicted a significant breakout higher for Bitcoin, drawing parallels with similar breakouts in traditional assets like gold and the S&P500. According to technical analysis of current price action, Bitcoin is playing a cup-and-handle pattern, which could send it jump to bullish price targets above $230,000.
Bitcoin Cup and Handle Waterfall
According to technical analysis, Bitcoin appears to be forming a textbook cup and handle pattern on the larger timeframe, which is a bullish continuation pattern that often leads to a significant price rise. This formation typically indicates a period of consolidation followed by a breakout higher, and if the pattern fully realizes, Bitcoin could reach new highs.
Related reading
In a recent analysis shared on On social media platform experienced a comparable pattern in the formation of the cup and handle, which ultimately led to a full-scale bull rally in 2023. This breakout pushed gold to new highs that continued until the time of the editorial team, with gold now trading above $2,730 over its history.
Likewise, the analyst highlighted a similar cup and handle pattern in the SP500, which ultimately led to a rally that started in late 2023 and resulted in new highs for the index.
Van Lagen pointed out that Bitcoin has been following a similar trend since the 2022 bear market. The “cut” part of the formation was completed when Bitcoin hit its all-time high in March. Today, Bitcoin is forming the “handle” part of the model, as cryptocurrency did. he has not yet revisited his historic record over the past seven months.
If the handle formation concludes and a breakout occurs, Bitcoin could be poised for a strong rally, much like gold and the S&P 500 experienced during their respective runs.
BTC at $230,000
According to van Lagen, Bitcoin is “poised to follow the structural path of the SP500 & Gold.” In terms of price target, he predicted a target of $230,000 for Bitcoin.
At the time of writing, Bitcoin is trading at $67,350. Reaching the $230,000 price level would require a 197% price increase from the current price.
Related reading
Interestingly, van Lagen’s forecast is just one of several bullish outlooks resurfacing as Bitcoin price has shown positive momentum. since the second week of October. Bitcoin is up about 13.5% from $59,500 on Oct. 10, prompting a return of bullish sentiment.
According to a report, this has caused an increase in Bitcoin accumulation by long-term holders.which now holds approximately 2.9 million BTC. Another analyst noted that Bitcoin is about to double in value and reach $130,000 by January 2025
Featured image created with Dall.E, chart from Tradingview.com
