Bitcoin’s Chart Pattern Approaches Critical Breakout Point, Analyst Anticipates 312% Return on Investment

Bitcoin may be on the verge of a significant price surge, with predictions suggesting a target of $260,000 by the end of 2024.

Despite crossing the $62,000 threshold for the first time in August, Bitcoin’s price is facing challenges in sustaining bullish momentum. One analyst believes that Bitcoin is nearing a breakout that could lead to six-figure values.

Potential for a Major Ascent in Q4

Gert van Lagen, an independent technical analyst, expresses strong confidence in an imminent explosive price movement for Bitcoin (BTC). In a recent post on social media, van Lagen pointed to the formation of a parabolic curve marked by a consistent rise in a step-like manner.

The analysis indicates the development of a rare Cup-and-Handle (CnH) pattern over nearly three years, beginning in October 2021.

A successful breakout from a CnH pattern can instigate a parabolic rise, as it confirms a trend bottom followed by a higher sideways consolidation over time. Additionally, research suggests that the success rate for this pattern is approximately 95%, highlighting its reliability.

Currently, the parabolic curve has outlined four bases:

• Base 1: Formed at the market bottom in November 2022.
• Base 2: Confirmed through a recovery from $15,460 to $25,290.
• Base 3: Established through sideways consolidation between $30,000 and $25,000 from April to September 2023.
• Base 4: The final phase of the parabolic curve, nearing a breakout.

Should Bitcoin surpass Base 4, the analyst predicts a potential for “the steepest kind of ascent BTC has ever witnessed,” possibly resulting in a blow-off-top rally, with projections of reaching up to $260,000, indicating a 312% gain from current price levels.

Impending Liquidation Surges Over $7 Billion

As Bitcoin approaches its previous all-time high above $70,000, significant implications for futures traders are anticipated. Data from Coinglass indicates that a major liquidation event could occur if BTC surpasses $70,493.

Currently, short liquidations are estimated at $7.18 billion at this threshold, with an additional $6.54 billion set to be liquidated at $72,581. This scenario indicates a robust division between bullish and bearish traders in the futures market.

Interestingly, long positions have shifted to a strongly bullish stance over the past day, despite Bitcoin’s recent price dip.

According to the data, 57.19% of accounts are now long, although the trade volume between long and short positions remains closely balanced, resulting in a Long/Short ratio of 1.01.

Bitcoin Approaches “Banana Zone”

Another analyst predicts that Bitcoin could soar as high as $150,000 by the conclusion of 2024.

Jame Coutts from Real Vision describes an expectation for BTC to enter what he coins “batshit season” or the “Banana Zone,” characterized by parabolic rallies with a substantial increase in price and volume, piquing collective market interest.

Bitcoin researcher Smithson With also published a study that accurately forecasted Bitcoin’s prior peak prices. His projections for 2025 anticipate a minimum price of $164,173 by January 1.

In summary, a common thread among these predictions is the expectation of rapid Bitcoin movement upon breaching its past all-time highs.

This content does not constitute investment advice. All trading and investment activities carry risks, and individuals should undertake thorough research when contemplating their decisions.