Bitcoin's price has been struggling to maintain its upward momentum despite briefly surpassing $62,000 in August. However, a prominent analyst suggests that BTC is on the verge of a significant breakout that could propel its price into six-figure territory.
"Steepest Kind of Ascent" Predicted for Bitcoin in Q4
Gert van Lagen, an independent technical analyst, is optimistic about Bitcoin's current trajectory, predicting a dramatic rise in its value. In an August 27 post on X, van Lagen noted the formation of a parabolic curve, with Bitcoin continuing to climb in a step-like manner.
He further pointed out a rare Cup-and-Handle (CnH) pattern that has been forming on Bitcoin's weekly chart over nearly three years, dating back to October 2021. The CnH pattern is known for its high success rate—95%, according to Tom Bulkowski, a seasoned trader and creator of Thepatternsite.com.
Breakout Could Lead to Parabolic Rise
A breakout from the CnH pattern could spark a parabolic surge, as the pattern typically signals a trend bottom followed by a consolidation phase. In the current parabolic curve, Bitcoin's Base 1 formed at the market bottom in November 2022, followed by a recovery to $25,290, confirming Base 2. The consolidation between $30,000 and $25,000 from April to September 2023 established Base 3.
Most recently, Bitcoin has been forming Base 4, which represents the "handle" of the CnH pattern, nearing its breakout point. Van Lagen anticipates that once Bitcoin breaks above Base 4, it will experience "the steepest kind of ascent BTC has ever witnessed," potentially leading to a blow-off-top rally.
The analyst has set a price target above $260,000 by the end of 2024, representing a 312% gain from current levels.
Massive Liquidation Event Looms for Futures Traders
Should Bitcoin break its previous all-time high of over $70,000, futures traders may face significant consequences. According to data from Coinglass, a major liquidation event could occur once BTC surpasses $70,493, with short liquidations totaling $7.18 billion at that level. At $72,581, an additional $6.54 billion in short positions could be liquidated, reflecting strong market positioning from both bullish and bearish traders.
Despite the recent price slump, the market sentiment appears bullish, with 57.19% of accounts currently long. However, the taker buy/sell volume between long and short traders remains closely matched, with a Long/Short ratio of 1.01.
Bitcoin to Enter the "Banana Zone"
Bitcompare reported a similar forecast from another analyst who expects Bitcoin to reach as high as $150,000 by the end of 2024. Jame Coutts, a Real Vision analyst, echoed this sentiment, predicting that BTC could enter what he calls the "Banana Zone," a phase characterized by a parabolic rally and increased market interest.
Additionally, Bitcoin researcher Smithson With has forecasted Bitcoin's price to exceed $164,173 by January 1, 2025, based on historical peak predictions from previous bull cycles.
Overall, these projections suggest that Bitcoin is on the brink of a rapid upward move once it breaks its previous all-time high, potentially leading to unprecedented price levels.
