Bitcoin On Track For $275,000? Analyst Cites Cup And Handle Formation

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As a seasoned analyst with over two decades of experience in the financial markets, I have witnessed numerous bull and bear cycles, and I must admit that Bitcoin continues to intrigue me like no other asset class.

Yesterday, Bitcoin (BTC) dropped to $94,500, following Microsoft shareholders’ rejection of a proposal to invest 1% of the company’s total assets into Bitcoin as a protection against inflation. Despite this decision, financial experts remain optimistic about potential future increases in Bitcoin’s value.

Bitcoin May Surge As High As $275,000

Based on information from Coinglass, approximately $478 million worth of contracts, predominantly long positions, were terminated in the last 24 hours due to the fall in BTC and other digital currencies. Notably, more liquidation occurred in altcoins than in Bitcoin.

On the other hand, certain analysts consider this drop in price as a prospect for investment. Experienced crypto analyst Ali Martinez recently pointed out a developing “long cup and handle” pattern on Bitcoin’s weekly graph via platform X.

If you’re new here, let me explain the cup and handle pattern. This is a bullish technical figure that looks like a curved “cup” followed by a brief pause or “handle.” Essentially, this pattern suggests that after the pause, there could be a resumption of an upward trend, potentially leading to substantial price increases.

Martinez pointed out that the current trend seems to indicate a potential rise in Bitcoin’s value up to approximately $275,000, due to its technical makeup. Yet, he advises traders to practice caution when making trades and refrain from taking on excessive risk by overextending their positions.

However, renowned crypto analyst Trader_XO cautions that Bitcoin needs to hold its ground at approximately $90,000 to prevent a potential drop. If Bitcoin fails to sustain this crucial level, it could see a decline to around $85,000. On the flip side, if Bitcoin manages to stay above $90,000, it could regain strength and continue its upward trajectory.

BTC Takes Another Jab At Breaking Through $100,000

Contrary to a temporary drop yesterday, Bitcoin bounced back quickly, approaching $100,000 during the time this text was written. The leading cryptocurrency has generally been on an upward trajectory, possibly boosted by today’s US inflation data for November, which mostly matched market forecasts.

Just now, Bitcoin reached a record peak of $103,679 as per CoinGecko’s data. Yet, its value has seen ups and downs above and below the significant $100,000 threshold. Consequently, there were more than $1.5 billion worth of positions liquidated within the past week.

As a crypto investor, I’ve been closely watching the market trends, and it seems that several factors could potentially drive Bitcoin’s price to an all-time high (ATH). One such factor is the significant decrease in Bitcoin reserves on cryptocurrency exchanges, which has reached multi-year lows. This decline suggests a growing demand for the digital asset, with investors eagerly acquiring Bitcoin, thereby increasing its potential value.

In simpler terms, financial expert and ex-investment banker Anthony Scaramucci suggests that China may create a Bitcoin reserve similar to the one the US is considering, should the latter go ahead with its plans. If both nations establish national Bitcoin reserves, it could strengthen the idea of Bitcoin’s supply shortage, leading to increased prices.

Simultaneously, more and more corporations are adopting Bitcoin, with Canadian video-sharing company Rumble being the most recent to announce a Bitcoin treasury strategy. Currently, Bitcoin is trading at $100,453, marking an increase of 4.1% over the past day.

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2024-12-12 09:04