Bitcoin’s (BTC) price action is bullish, with chart patterns indicating a rally to and possibly past $200,000. Crypto analysts, including Mags and Gert van Lagen, have shared charts on this potential breakthrough.
Moreover, their charts highlight an inverse head and shoulders (H&S) pattern and a two-year Cup and Handle formation. These patterns indicate robust bullish trends, with recent resistance levels tested and surpassed.
The inverse head and shoulders pattern is a bullish reversal indicator. In this configuration, two “shoulders” surround a low point called the “head,” and the “neckline,” which connects their highs, acts as a resistance level.
Mags’ chart, shared by CryptosRus, points out that Bitcoin is currently testing this neckline. A successful break above this level could confirm the pattern and open the door to new price highs, with a target zone of $200,000 projected by 2025.
The neckline acts as a pivotal resistance level. The inverse H&S pattern might be confirmed by a break above this level, which would pave the way for additional higher momentum.
The next major target, according to CryptosRus, is around $200,000, which is the height of the head from the neckline, if Bitcoin overcomes this barrier.
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Cup and Handle Formation: Projected Gains Beyond $200,000
Adding to the bullish outlook, analyst Gert van Lagen observes a completed Cup and Handle pattern in Bitcoin’s two-year price movements. This pattern traditionally indicates a period of consolidation followed by a breakout, a setup often seen before price increases.
Van Lagen’s analysis suggests that Bitcoin has surpassed the neckline of this pattern, which sits around $69,000, turning it into a new support level. This breakout, combined with an ascending volume spike, signifies rising buyer interest and momentum.
The handle section, shaped like a descending broadening wedge, further supports the bullish scenario. With the neckline confirmed as a new support level, Bitcoin’s next target range extends from $220,000 to $320,000, as calculated by measuring the depth of the cup and projecting it from the breakout point.
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Volume and Market Sentiment: Aiding BTC’s Momentum
Both analysis emphasize the importance of volume spikes in validating Bitcoin’s breakout from these patterns.
In van Lagen’s analysis, the green volume spike accompanying the breakout of the Cup and Handle pattern adds weight to the bullish signal, indicating strong buyer interest.
Increased buying volume often reflects broader market sentiment and may encourage further accumulation around current support levels.
As the price consolidates, the $69,000 level is expected to act as a critical support zone. Holding above this mark will likely reinforce the ongoing bullish trend, potentially inviting more long-term investors.
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