By Michael Scott
Bitcoin will likely witness a parabolic rally the analyst predicts will reach the $260,000 target by Q4.
The renewed confidence among investors is behind the significant uptick experienced across the crypto market. Altcoins are gaining traction driven by positive investor sentiment that has propelled the Bitcoin price above $62,000 for the initial time this month.
Despite the robust upward trajectory witnessed over the past week, the Bitcoin price movement struggles to sustain the bullish momentum. Nonetheless, technical analyst Gert van Lagen believes BTC is edging closer to a potential breakout that will hit a six-figure price tag.
Bitcoin Closer to Steep Ascent
Lagen is confident that Bitcoin will sustain the recent price action to realize an explosive outcome in Q4. In a Monday, August 26 post on X, the analyst revealed that Bitcoin established a parabolic curve as it sustains a step-like rise.
The weekly chart shows a rare cup-and-handle (CnH) pattern forming, per Lagen’s note. The pattern has taken three years, with the analyst tracing it to October 2021.
The successful breakout from the CnH pattern could trigger Bitcoin’s parabolic rise. Notably, Lagen points out the pattern confirms the trend bottom and, subsequently, higher sideways consolidation.
Thepatternsite.com’s creator, Tom Bulkowski, illustrates that the CnH pattern has a high success rate of 95%.
The analyst observes the initial parabolic curve section saw base 1 formed when the market hit bottom in November 2022. The Bitcoin would recover from $15,460 to confirm base 2 at a $25,290 price tag.
The autonomous technical analyst highlights Bitcoin’s sideways consolidation in the $25,000 – $30,000 range between April and September last year, resulting in base 3. The impressive gain in Bitcoin following the spot BTC exchange-traded fund (ETF) approval in the US saw the initial 198% parabolic rise to peak at $73,737 on March 14.
The past few weeks are evidence of the BTC/USD chart printing the base 4 the analyst considers the final phase. Lagen demonstrates that Base 4 constitutes the “handle” section of the CnH pattern, simultaneously edging closer to the breakout.
The technical analyst forecasts that if the Bitcoin upside momentum hits above base 4, it will trigger the steepest ascent. Such has the potential to translate into a blow-off-top rally.
Lagen predicts the surge will lift the Bitcoin price to above $260,000. Such will realize a 312% gain from the Bitcoin present price.
Billion-Dollar Liquidation at $70,500
The market indicators illustrate that the Bitcoin price rally exceeding $70,000 will trigger several consequences for future traders. CoinGlass data indicates a large liquidation will emerge once Bitcoin surpasses $70,493.
The data shows short liquidations translate to $7.18 billion as of Tuesday, August 27. Comparatively, short positions amounting to $6.54 billion will suffer liquidation at $72,581. This implies that the futures market is domiciled between bullish and bearish traders.
Nonetheless, the long/short accounts reversed to strongly bullish in the past day despite Bitcoin witnessing a slight price slump. Coinglass data shows 57.19% of long positions in the accounts. A notable development is the taker buy/sell volume in long and short trading closely matched at 1.01 for the long/short ratio.
BTC Price Approaching the Banana Zone?
A recent prediction by Real Vision’s James Coutts that Bitcoin could test a high at $150,000 by Q4 2024. The analyst touts the familiar tone in anticipation of Bitcoin price action plunging into either batshit season or entering the banana zone.
A banana zone involves a parabolic rally witnessed when BTC price and volume escalate. The zone will prompt the collective market interest to further the rally exponentially.
Bitcoin researcher Smithson With echoed the prediction of BTC price testing a six-figure price tag in Q4. The researcher, who accurately called the previous peak, anticipates the price target to hit $164,173. The prediction aligns with the same pattern where BTC will race to set an all-time high.