Bitcoin‘s price struggled to maintain its upward momentum despite surpassing $62,000 in August. However, an analyst believes Bitcoin is approaching a potential breakout leading to six-digit prices. Independent technical analyst Gert van Lagen is confident that Bitcoin’s current price movement will have an explosive outcome.
Notable Development in Bitcoin Chart
In an August 27 post, van Lagen highlighted the formation of a parabolic curve as Bitcoin continues to rise in a step-like pattern. The chart also shows the formation of a rare Cup and Handle (CnH) pattern on the weekly chart. The pattern has formed over nearly three years, dating back to October 2021.
A successful breakout from a CnH pattern can trigger a parabolic rise as the model confirms a trend base and higher side consolidation during its development. According to popular analyst Tom Bulkowski, the success rate of a CnH pattern is also quite high at 95%.
The first layer of the parabolic curve formed at the market bottom on November 1, 2022. The recovery from the market bottom at $15,460 to $25,290 confirmed the second step. Bitcoin’s horizontal consolidation between $30,000 and $25,000 from April 2023 to September 2023 led to the formation of the third step.
Bitcoin witnessed its first parabolic rise of 198%, reaching a new all-time high of $73,737 in March 2024. In the past few weeks, the BTC/USD chart has written the formation of the fourth base, the final stage of the parabolic curve. The fourth step is also the handle part of the CnH model, approaching a breakout.
When Bitcoin breaks above the fourth step, the analyst expects Bitcoin’s steepest rise or a blow-off top rally. By the end of 2024, the price target will be above $260,000, representing a 312% gain from Bitcoin’s current prices.
What’s Happening on the Bitcoin Front?
When Bitcoin’s price surpasses the previous all-time high range above $70,000, it will have several implications for futures investors. Data from Coinglass shows a significant liquidation event will occur when Bitcoin surpasses $70,493.
As observed, short-term liquidations at this price reached $7.18 billion as of August 27. Similarly, another $6.54 billion in short positions will be liquidated at $72,581, indicating that the futures market remains strongly positioned among both bullish and bearish investors.
Despite Bitcoin’s price decline, Long/Short accounts have been strongly bullish in the past 24 hours. Data shows that 57.19% of accounts are currently long. However, the Long/Short ratio remained at 1.01, indicating closely matched buy/sell volume among long and short-term investors.
