Bitcoin’s (BTC) price is struggling to maintain bullish momentum despite moving above $62,000 for the first time in August. However, one analyst believes BTC price is approaching a potential breakout that will outperform each rally from the past.
“Steepest kind of ascent” awaits Bitcoin in Q4
Gert van Lagen, an independent technical analyst, appears confident that the current price action for BTC will have an explosive outcome. In an Aug. 27 X post, van Lagen highlights the formation of a parabolic curve, where BTC has continued to rise in a step-like formation.
The chart also illustrates the formation of a rare Cup-and-Handle (CnH) pattern on the weekly chart. The pattern has taken shape over almost three years, dating back to October 2021.
A successful breakout from a CnH pattern can trigger a parabolic rise since the pattern confirms a trend bottom and then a higher sideways consolidation during its development.
The success rate of a CnH pattern is also very high at 95%, according to Tom Bulkowski, a well-known trader and creator of Thepatternsite.com.
Bitcoin Cup and Handle pattern approaching parabolic breakout. Source: X.com
In the parabolic curve, Base 1 was formed at the market bottom in November 2022. A recovery from the market bottom at $15,460 to $25,290 confirmed Base 2. Bitcoin’s sideways consolidation between $30,000 and $25,000 during April 2023 and September 2023 led to Base 3.
Moving forward, Bitcoin witnessed its first parabolic rise of 198%, reaching a new all-time high of $73,737 in March 2024.
Over the past few weeks, the BTC/USD chart has printed the formation of Base 4, which is the final phase of the parabolic curve. Base 4 is also the “handle” part of the CnH pattern, which is approaching a breakout simultaneously.
Once Bitcoin breaches above Base 4, the analyst expects “the steepest kind of ascent BTC has ever witnessed,” or a blow-off-top rally.
By the end of 2024, the price target is above $260,000, which is a 312% gain from BTC’s current prices.
Over $7B shorts will be liquidated at $70,500
Bitcoin price, crossing above its previous all-time high range at over $70,000, will not be without a few consequences for futures traders. Data from Coinglass suggests a large liquidation event will occur once BTC crosses $70,493.
Bitcoin liquidation heatmap. Source: Coinglass
As observed, short liquidations amount to $7.18 billion at that price as of Aug. 27. Similarly, at $72,581, another $6.54 billion in short positions will be liquidated, which means the futures market is still strongly positioned between both bullish and bearish traders.
However, the Long/Short accounts turned strongly bullish over the past 24 hours despite BTC’s price slump.
Bitcoin long/short accounts on Binance. Source: Coinglass
The data indicates that 57.19% of the accounts are currently long. Yet, the taker buy/sell volume between long and short traders was closely matched, as the Longs/Short ratio remained at 1.01.
Bitcoin to enter “the Banana Zone”
Cointelegraph reported a similar prediction for Bitcoin by another analyst, who predicts BTC to reach as high as $150,000 by the end of 2024.
Jame Coutts, Real Vision analyst, touts a familiar tone where he expected BTC price action to enter “batshit season” or the Banana zone.
A banana zone is defined as a parabolic rally where price and volume witness a significant escalation, which triggers collective market interest and, hence, a further continuation of exponential rise.
Additionally, Smithson With, a Bitcoin researcher, also shared a study that correctly called Bitcoin’s peak from previous bull cycles. With's price targets varied over the course of 2025, but the minimum expected price is $164,173 by Jan. 1, 2025.
Overall, these predictions follow a similar pattern where BTC is expected to move rapidly once its previous all-time high is breached.
At the moment, Bitcoin is priced at $62,872, having declined 2% over the past day.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
