Analyst Predicts Bitcoin Could Hit $263,000 Based on Technical Analysis
Bitcoin is currently facing key resistance levels, and an analyst has suggested that if the cryptocurrency surpasses these levels, it could reach a new all-time high. According to the analysis by Trader Tardigrade, Bitcoin’s price could potentially soar to $263,000 based on the “Cup and Handle” pattern, a well-known technical analysis indicator.
- “Cup and Handle” Pattern:
- The pattern points to bullish continuation signals and typically appears during an extended uptrend.
- The cup formation started in July 2021 and ended in April 2023, with the handle phase currently in progress.
Key Levels to Watch
Trader Tardigrade highlighted two significant levels in the analysis: $68,000 and $263,000. The $68,000 level serves as the breakout point from the handle, marking the beginning of a strong bullish phase once breached. The projected target based on the pattern is set at $263,000.
- Breakout Point:
- A decisive move above $68,000 would signal a breakout and potential rally towards $263,000.
Once Bitcoin surpasses $68,000, confirming a breakout from the handle, it could trigger a significant bullish phase, according to the analyst.Â
The anticipated rally towards $263,000 would be driven by growing investor confidence and strong buying pressure, resulting in a transformative price movement for Bitcoin.
Ethereum ETF Impact and Market Sentiment
Investors are closely monitoring the upcoming launch of the Ethereum ETF in the United States, expecting a favorable impact on market sentiment. The arrival of new capital through such products could benefit Bitcoin and other assets in the market.
Bitcoin Indicates Buy Signals
In the short term, Bitcoin is flashing buy signals, with analysts pointing to a notable Hash Ribbon ‘Buy’ signal as an indicator of a potential price surge. This technical analysis tool, which examines Bitcoin’s network hashrate, has historically preceded significant price rallies in the cryptocurrency.
- Hash Ribbon Signal:
- The Hash Ribbon ‘Buy’ signal suggests a potential bullish trend in the near future.
Moreover, the current chart analysis aligns with a Wyckoff Accumulation pattern, indicating that Bitcoin may be nearing the end of an accumulation phase before a robust uptrend. The recovery of Bitcoin’s hashrate after a period of low mining profitability further supports this bullish outlook.
Bitcoin Price Movement
As of now, Bitcoin is trading at $66,356, experiencing minimal daily losses. The cryptocurrency has seen a weekly gain of over 2%, with investors keeping a close eye on the $65,000 support level and aiming for the $70,000 resistance target.
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