A prominent crypto analyst has projected a significant upward movement for Bitcoin, anticipating a breakout similar to historic surges seen in traditional assets like Gold and the S&P 500. This optimistic forecast is based on a technical analysis that identifies a cup and handle pattern in Bitcoin’s current price action, which could drive its value to exceed $230,000.
The cup and handle pattern, observed on the largest timeframe, suggests a bullish continuation. Typically, this pattern indicates a consolidation phase followed by an upward breakout, potentially leading to a major price rally. If the pattern fully materializes, Bitcoin could reach unprecedented heights.
In a recently shared analysis on social media platform X, technical analyst Gert van Lagen drew comparisons between Bitcoin’s ongoing cup and handle formation and similar patterns previously seen in Gold and the S&P 500. Van Lagen noted that Gold’s comparable setup led to a significant bull rally in 2023, pushing Gold to trade above $2,730, an all-time high.
Similarly, a cup and handle pattern in the S&P 500 contributed to a rally that began in late 2023, culminating in new peaks for the index. Van Lagen emphasized that Bitcoin has been developing a similar pattern since the 2022 bear market. The “cup” was completed when Bitcoin reached its all-time high in March, and the cryptocurrency is now forming the “handle” portion, having not revisited its peak in the past seven months.
Should the handle formation finalize and a breakout ensue, Bitcoin could embark on a robust rally akin to those experienced by Gold and the S&P 500 during their bull runs. Van Lagen predicts that Bitcoin could follow the structural path of these traditional assets, setting a bullish price target of $230,000.
Currently, Bitcoin is trading at $67,350. Achieving the $230,000 mark would require an approximate 197% increase from its present value. Van Lagen’s prediction is among several bullish forecasts emerging as Bitcoin’s price shows positive momentum since mid-October. Up by about 13.5% from $59,500 on October 10, Bitcoin’s resurgence has rekindled bullish sentiment.
Reports indicate a rise in Bitcoin accumulation by long-term holders, who now possess around 2.9 million BTC. Another analyst has suggested that Bitcoin is on a trajectory to double in value, potentially reaching $130,000 by January 2025. Despite these optimistic projections, some market participants remain bearish, demonstrating attempts to exert control over Bitcoin’s price direction.