Bitcoin Price’s Path To $300,000 Cleared By Massive Bullish Pattern, Says Analyst

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As a researcher with a background in technical analysis and a keen interest in cryptocurrencies, I find the Cup with Handle pattern identified by Gert van Lagen in Bitcoin’s 3-day chart intriguing. The potential for such a significant price increase to $300,000 is certainly noteworthy.

Based on the analysis of cryptocurrency expert Gert van Lagen, the Bitcoin price chart exhibits a notable technical configuration in the 3-day BTC/USD graph, which could indicate a potential rise towards an astounding $300,000. This pattern is referred to as the “Cup with Handle,” and it’s highly regarded among traders due to its accurate forecasts and bullish tendencies.

Unpacking The Massive Bitcoin Cup And Handle Pattern

The “Cup and Handle” formation in stock charts represents a bullish trend continuation. This pattern is reminiscent of a teacup shape. It is created when the price falls initially, then recovers to form a rounded base or “cup,” subsequently dipping slightly before rising again, forming the “handle.” Following this, the stock resumes its upward trend.

Bitcoin Price’s Path To $300,000 Cleared By Massive Bullish Pattern, Says Analyst

As an analyst, I would describe the cup pattern in Bitcoin’s price chart as follows: In this portion of the graph, we observe a period of consolidation and recuperation. This phase usually initiates with a peak price, which is subsequently followed by a downtrend that forms a rounded, U-shaped trough. The trend then reverses direction and climbs back up to reclaim the initial high point. For Bitcoin, this cup formation commenced in November 2021 when its price peaked at $69,000. It concluded in March 2024 upon reaching a new all-time high, signaling an end to a prolonged period of consolidation.

The Handle: After the cup shape of the price chart, there’s a subtle decline that forms the handle. This part is shallower in depth and length compared to the cup. It often signifies a final consolidation or a period of uncertainty for less optimistic investors before a major price surge. Over the past few months, Bitcoin has displayed such a handle, indicating a more confined price range and reduced volatility.

When the handle of a chart pattern is finished, the strong bullish feeling and persistent buying force frequently push the price beyond the earlier resistance point – represented by the edge of the cup. This breakthrough is significant because it validates the pattern and paves the way for potential price growth in the future.

As an analyst, I would recommend determining the target price for Bitcoin after a Cup with Handle breakout by calculating the depth of the “cup” formation and extending that distance upward from the exact point of the breakout. The low point of the cup, around $15,500, can be used as a reference when measuring this vertical distance in relation to the initial high at $69,000.

Related Reading: Bitcoin Is ‘Still Significantly Undervalued,’ Says Finance Guru Bill Miller IV

As a market analyst, I’d interpret Gert van Lagen’s statement regarding Bitcoin (BTC) in this way: “According to my analysis via X, the ‘Cup with Handle’ pattern on Bitcoin’s chart suggests a potential target price of around $300,000. The price has already broken above the handle or ‘bull flag,’ and it has since retested that level for approximately four weeks without falling back.”

Perspectives From Other Analysts

As a crypto investor, I’ve come across an interesting analysis by Nunya Bizniz that highlighted the significance of using different scales when making price projections for cryptocurrencies. She brought up a valid point about the discrepancies in outcomes based on whether measurements are made on a logarithmic or linear scale. Based on her linear projection, she suggested a potential target near $121,947. On the other hand, using a logarithmic scale might lead to a much higher price ascension, approximating around $309,295.

Measured move targets on a log chart?

— Nunya Bizniz (@Pladizow) June 13, 2024

Jonathan Hobbs, a CFA, injected a note of caution into the conversation, pointing out that estimates on the higher end of the spectrum often garner substantial focus and have a disproportionate impact on market sentiment for Bitcoin. In other words, discussions about extremely optimistic Bitcoin price predictions tend to generate the most interest.

At press time, BTC traded at $67,513.

Bitcoin Price’s Path To $300,000 Cleared By Massive Bullish Pattern, Says Analyst

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2024-06-13 11:46