The cryptocurrency market is abuzz as Bitcoin’s price has successfully navigated past a significant resistance level, setting its sights on the $320,000 milestone. According to a renowned crypto analyst, this development marks a resurgence of bullish sentiment, with indicators pointing towards extreme greed in the market.
Bitcoin Price Sets Sights On $320,000 As Wave 5 Begins
In recent days, Bitcoin’s price action has captivated investors and traders alike. The cryptocurrency has achieved multiple all-time highs in rapid succession, driven by a flood of investor interest. This heightened demand has resulted in the formation of consecutive bullish candlesticks on both daily and weekly charts, underscoring the robustness of the upward momentum.
Technical Insights: The Cup-and-Handle Pattern
Crypto analyst Gert van Lagen has identified a bullish pattern in Bitcoin’s price chart, particularly highlighting the breakout of the classic ‘cup-and-handle’ formation. This pattern has been taking shape since 2022, with the ‘cup’ reaching its peak above $73,700 in March 2024. The subsequent consolidation phase, forming the ‘handle,’ concluded in October.
The recent price surge has seen Bitcoin break free from a ‘base 4 step-wise formation,’ which had previously posed a threat of a bear trap. With this breakout now confirmed, van Lagen projects a target range for Bitcoin between $220,000 and $320,000. This range is considered a ‘major sell line,’ where profit-taking is expected to intensify as Bitcoin approaches these upper thresholds.
Exploring the Wave 5 Formation
The technical analysis further supports the emergence of a sub-wave 5 formation, recognized as a bullish phase within the larger Elliot wave uptrend that commenced in January 2023. This wave is anticipated to be the concluding sub-wave, potentially propelling Bitcoin’s price towards new heights.
Current State Of Bitcoin
Currently, Bitcoin is trading at $89,500, boasting a market capitalization of $1.77 trillion. The cryptocurrency recently achieved an all-time high of $89,864, reflecting a remarkable 10.5% increase over the past 24 hours. However, this record may soon be surpassed, given the prevailing bullish sentiment and substantial inflow of investments.
The Relative Strength Index (RSI) is above 70 across all timeframes, ranging from daily to yearly, indicating strong buying momentum. The next anticipated targets are $90,000 and $100,000. Achieving Gert van Lagen’s projected range of $220,000 to $320,000 would signify a substantial 145% to 255% increase from the current price, respectively.
Looking Forward
As Bitcoin continues its upward trajectory, investors remain cautious about when to take profits. The market’s current exuberance suggests that the bullish momentum is likely to persist, driving Bitcoin towards its ambitious targets. Enthusiasts and analysts alike are closely monitoring developments in anticipation of further price surges.
