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Bitcoin could soon surpass the $100,000 mark as technical patterns signal a potential bullish breakout. Learn what analysts are predicting about the flagship cryptocurrency.
Technical analysis presented on TradingView by cryptocurrency trader TradingShot highlights a âcup and handleâ pattern forming on Bitcoinâs weekly price chart. This pattern, recognized as a bullish signal, occurs when a price decline is followed by a gradual recovery that forms a âUâ shape, followed by a smaller downward drift which forms the handle. Such formations generally indicate that the asset is poised for upward movement.
Despite Bitcoinâs price decline from $72,000 to approximately $63,500, analysts maintain that the larger trend remains bullish. The formation of the handle portion of the pattern is progressing, with Bitcoin recently dipping to around $63,500. The final upward movement largely hinges on key support levels such as the 200-day moving average (1D MA200) and the 50-week moving average (1W MA50), both of which have historically provided significant support.
The cup section of the pattern took shape between early 2022 and mid-2023, while the handle has been forming throughout 2024. The analysis suggests a substantial price surge following the completion of this pattern. Historical data indicates Bitcoin has seen three major upward movements since November 2022, ranging from 91% to 99%. Should the 1D MA200 support hold, Bitcoin could target prices between $100,000 and $110,000 in the next expansion phase.
Interestingly, on-chain analytics firm Santiment has observed a notable shift in market sentiment. The recent decline in Bitcoinâs price has led to increased fear and disinterest among investors. Santiment noted on the microblogging platform X that this level of FUD (Fear, Uncertainty, and Doubt) is unusual, often marking a period when traders are likely to capitulate. This fear, combined with significant whale accumulation, may create an environment ripe for a market rebound, benefiting those who remain patient.
In summary, the formation of a âcup and handleâ pattern suggests Bitcoin is on the verge of a significant price increase, potentially reaching the $100,000 mark. Key support levels and market sentiment will play crucial roles in determining this outcome. As historical patterns indicate, those who maintain a long-term perspective and patience may reap substantial rewards. Investors should watch for support levels to hold, as these will likely dictate the next major price movements for Bitcoin.
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