Bitcoin Time Bomb Setup Targets $150K by 2025
Date: 2024-09-16 Author: Oliver Abernathy Categories: CRYPTO PAYMENTS
Classic BTC Price Pattern Hints at a Major Breakout
Bitcoin’s recent price action shows a confluence of technical indicators pointing to a possible breakout. The most prominent formation on the charts is the cup and handle, a classic technical pattern that suggests a continuation of the bullish trend.
This pattern includes a rounded bottom (the “cup”) and a subsequent consolidation phase (the “handle”). The handle formation signals a period of consolidation, which often precedes a major bullish breakout.
In Bitcoin’s case, the cup began to form after its peak in late 2021, and the handle is now forming as the price fluctuates below the $65,000–$69,000 resistance level.
The cup and handle pattern is realized when the price breaks through the resistance line (the “neck”) and, according to the technical rule, rises by an amount equal to the maximum distance between the neck and the lowest point of the cup.
In Bitcoin’s case, the distance between the bottom of the cup (around $15,000) and the resistance at its edge (around $65,000) is approximately $50,000.
Projecting this distance upward from the breakout point, independent analyst Elja forecasts a range of $110,000 to $130,000 for Bitcoin in early 2025.
Bitcoin Is a ‘Time Bomb’
Analyst Nestay has identified a number of indicators that point to a possible move that supports the bullish cup-and-handle setup.
For example, the Bollinger Band Width (BBW) indicator on Bitcoin’s weekly chart has been narrowing since June. Technically, the narrowing of BBW indicates low volatility in the market, which has historically preceded significant price moves.
At the same time, oscillators such as the Stochastic RSI and the Relative Strength Index (RSI) point to the asset being oversold.
Nestay also points to the Cryptocurrency Fear and Greed Index, which is currently in the ‘fear’ zone. Historically, periods of extreme fear have preceded Bitcoin’s sharpest rallies, indicating that the asset is oversold and selling pressure is easing.
The macroeconomic situation also adds weight to this bullish scenario. The rise in the global liquidity index indicates capital inflows into risk assets such as Bitcoin.
This rise in liquidity, coupled with the narrowing of Bitcoin's price range, described by Nestay as a "time bomb", creates a scenario in which a breakout is possible, especially as October and November approach.
