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Bitcoin price poised for major rally as analyst predicts move to $200K

GrafaGrafa2024/08/28 03:00
By:Mahathir Bayena

Bitcoin (CRYPTO:BTC) may be on the brink of a significant breakout, with one analyst forecasting that the cryptocurrency could surge to unprecedented heights. 

Gert van Lagen, a well-known technical analyst, has suggested that Bitcoin could reach $200,000 during its current cycle. 

This prediction is based on a parabolic Cup and Handle pattern that has been forming on Bitcoin’s weekly chart since 2021.

Bitcoin appears to be moving within the "handle" portion of this pattern, which often precedes a bullish continuation. 

Van Lagen's analysis points to a potential "banana zone" rally, a term coined by Raoul Pal to describe a period of explosive growth for Bitcoin and other cryptocurrencies. 

If this pattern plays out as expected, Bitcoin could experience a significant upward move.

Adding to this bullish outlook is the Long-Term Holder Market Inflation, a metric that tracks the rate of accumulation or distribution among long-term Bitcoin holders. 

Recent data shows that this metric has been decreasing since early August, indicating that long-term holders are accumulating Bitcoin at a faster rate. 

Historically, a decline in market inflation has preceded major price rebounds for Bitcoin, suggesting that a notable rally could be on the horizon.

In the short term, Bitcoin faces key levels that could determine its next move. 

On the 4-hour chart, the cryptocurrency shows signs of exiting its recent drawdown, with a potential buy signal that could push its price toward $64,240. 

However, critical support levels at $61,839 and $60,680 must hold for this bullish scenario to unfold. 

If Bitcoin fails to maintain its momentum above $61,839, it could face a deeper correction, potentially dropping below $60,000.

Beyond technical analysis, Bitcoin has also seen significant inflows into Bitcoin ETFs over the past ten days, mirroring conditions that led to its all-time high in March. 

If these inflows continue, Bitcoin could rally towards $70,000 in the near term. 

Analyst Michaël van de Poppe has also suggested that Bitcoin could reach a new all-time high if it holds above $62,000, reinforcing the potential for a major upward move.

However, the bullish outlook could be invalidated if Bitcoin fails to maintain key support levels, leading to a possible downturn. 

As Bitcoin navigates these critical levels, the coming weeks could be decisive in determining whether it will achieve the anticipated $200,000 target or face further challenges.

At the time of writing, the Bitcoin price was $59,045.46.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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