A prominent cryptocurrency trader has recently predicted that leading cryptocurrency Bitcoin ($BTC) could reach a new record high above the $263,000 mark if it manages to break through a “textbook example” of a technical chart pattern.
In a post shared on the microblogging platform X (formerly known as Twitter), popular pseudonymous cryptocurrency trader Trader Tardigrate has recently told his over 50,000 followers on the platform Bitcoin’s chart formed a “textbook example of Cup with Handle chart pattern.”
A cup and handle pattern occurs when the price of a security trends downward and recovers to form a “u” shape, before seeing another slight downward drift that forms the handle. It’s widely considered a bullish signal.
#Bitcoin textbook example of Cup with Handle chart pattern is so obvious 🔥Take note on these numbers: $68k and $263kOnce $BTC breaks out $68k, indicating a BREAKOUT from the handle. This triggers the Bullish phase with this Cup with Handle Breakout.Measured target: $263k 🚀 pic.twitter.com/s2QM0rtOuN
— Trader Tardigrade (@TATrader_Alan) July 23, 2024
Trader Tardigrade shared a price chart illustrating Bitcoin’s Cup with Handle pattern, indicating that the cryptocurrency could witness a substantial rally to $263,000 by the end of 2024. To achieve this, Bitcoin’s price must break above the $68,000 level, representing the handle part of the chart pattern.
In a subsequent post, the analyst noted that Bitcoin’s price has reached the upper resistance of the descending channel pattern, a technical indicator characterized by two parallel trend lines sloping downwards while “moving as expected.”
While the upper trend line acts as resistance, the lower line serves as support in the descending channel. Trader Tardigrade said that the resistance was weaker than the lower support, making a potential breakthrough more likely.
The analyst also predicted that Bitcoin may undergo a brief period of consolidation before its next breakout move. BTC is at the time of writing trading above the $67,000 after rising more than 5% in the last few days.
The prediction comes at a time in which Matthew Sigel, Head of Digital Assets Research and Patrick Bush, Senior Investment Analyst (Digital Assets), VanEck’s digital assets research team outlined a scenario where Bitcoin could reach $2.9 million per coin by 2050.
The valuation model predicts Bitcoin will become a crucial component of the International Monetary System, taking significant market share from the Principal Four currencies (USD, EUR, JPY, GBP).
VanEck anticipates a 20% market share decline for these currencies, with the Chinese renminbi, Bitcoin, emerging market currencies, and gold gaining that share. In this scenario, Bitcoin is expected to capture 10% of cross-border payments and 5% of domestic trade.
The model assumes that central banks will hold 2.5% of their assets in Bitcoin by 2050. Additionally, due to its store-of-value properties, 85% of Bitcoin’s supply is expected to be effectively removed from circulation by long-term investors.
Featured image via Unsplash.
