- Bitcoin Nears Breakout, the way which bitcoins are formed is in the process of forming a parabolic curve, which of high probability suggests exponential increase.
- It has been rising for the past three years in three stages of parabolic rise in its growth curve.
- It is significant to note that Bitcoin’s price lacks the bullish strength to push higher currently, however, once the price breaks through Base 4 a sharp rise could be witnessed.
- On the basis of the price prediction, the token price is expected to reach $260,000 by the end of 2022, which shows the possibility of 312% returns.
- The market is now in the futures market, yields a strong vote between future bulls and bears.
Bitcoin (BTC) is currently at a crossroad that may lead to a breakout and achieve new all-time highs and reach a target of $260,000 by the end of 2024. This forecast has been made by independent technical analyst Gert van Lagen, who pay special attention to the price of Bitcoin. Now let’s get deeper into this forecast and consequences that it can have for Bitcoin shareholders.
Formation Process Unfolds into a Parabolic Curve
From the given chart, it can be seen that Bitcoin has been establishing a parabolic curve, which means that there are high chances of the Bitcoin to rise exponentially soon. Especially, moving from flat to step-like formation, as Van Lagen pointed out, indicates that Bitcoin is ready to start the next leg up. This curve has been building almost for the three years with several stages of parabolic like growth.
Price History which created the Parabolic Curve
- Base 1: Developed during a market low in November 2022 where Bitcoin had fallen to the low of $15,460 then it rose to $25,290.
- Base 2: Confirmed as Bitcoin price was range bound within $25000 -$30000 from Apr’23 to Sep’23
- Base 3: The Bitcoin’s price increased by 198% thereby attaining its highest value of $73,737 by March 2024.
The chart now presents how the formation of Base 4 forms the last part of the parabolic curve but is known as the ‘handle’ of the Cup-and-Handle (CnH) pattern.
The Cup-and-Handle Pattern: bullish pattern.
It is a technical pattern and through its formation it points towards the fact that the bullish price trend is quite strong. This pattern has been building on Bitcoin’s weekly chart since October 2021.
Breakdown of the Cup-and-Handle Pattern
- Cup Formation: Stands for the positive rounding bottom that indicates that stock price has stabilized and bottoming formation is complete.
- Handle Formation: A consolidation period during the cup, which this pattern is close to reaching a breakout.
Traders’ experiences are as follows: Tom Bulkowski, a trader with lots of experience, reports that the success frequency of the CnH pattern is extremely high, 95%. This may imply that the current trend in the Bitcoin market may bring about significant increase in the prices.
Some Prospective Price Pattern and Breakout Connotations
Bitcoin’s present price tends to lack the bullish strength while in the past it rose past $62,000 for the first time in August. But the analyst states that once BTC manages to cross Base 4, what follows could be “the sharpest kind of rally that Bitcoin has ever experienced. ”
Price Target and Expected Return on Investment
Already on the price prediction of the Bitcoin for the end of 2022, the forecast is above $260,000. This shows that its potential of growing from it’s current levels could be 312% ROI. Namely, such a surge corresponds to the expected escape from the CnH pattern as well as the constant growth along with the parabolic curve.
Impact on futures market and potential liquidations
At $70k as the price of BTC, the futures market is expected to have huge rates of liquidations.
- At $70,493, Over $7.18 billion in short positions could be covered.
- At $72,581: Another $6.54 billion in shorts may opt for liquidation.
This shows that market is currently very into the futures market and has great strong position between future bulls and bears. Long position and short position still stay relatively equal, suggesting the environment of ambiguity in the market.
Read Also:
OKB Coin Review and Fundamental Analysis
- Disclaimer: The information provided by CryptopianNews is for educational and informational purposes only. It should not be considered financial or investment advice. Cryptocurrency markets are highly volatile and speculative, and investing in them carries inherent risks. Readers are advised to conduct their own research and consult with a qualified financial advisor before making any investment decisions.
Doc A is knowledgeable in content writing and freelancing in the field of cryptocurrency where there is so much changing at every exigent moment. Able to think strategically and analyze complex systems, Doc A is a masterful writer who can provide important information and analysis to help people navigate the world of crypto investments.