While Bitcoin (BTC) struggles with key resistance levels, the analyst noted that if the top cryptocurrency breaks through notable levels, it will be on track to hit a new all-time high.
According to the analysis presented Tardigrade Trader In a July 23 post on X, Bitcoin could reach a high of $263,000 based on the Cup and Handle pattern, a classic technical analysis indicator.
Notably, the Cup and Handle is used to identify bullish continuation signals. This pattern usually forms during a long-term uptrend and indicates potential continuation after its completion.
The formation of the bowl began around July 2021 and was completed in April 2023, followed by the formation of the handle, which is currently in its final stages.
Tardigrade Trader In his analysis, he identified two critical levels: $68,000 and $263,000. The $68,000 mark is defined as a breakout point. Once the price of Bitcoin rises decisively above this level, it will mean a breakout from the handle portion of the pattern, initiating a strong bullish phase.
According to the analyst, the measured target for this pattern is $263,000. This target is calculated by measuring the distance from the bottom of the cup to the breakout point and then projecting that distance up from the breakout point.
“Note these numbers: $68K and $263K. Once $BTC breaks $68K, it will mark a BREAKOUT from the handle. This starts a bullish phase with this cup and handle,” the analyst said.
If Bitcoin successfully breaks through $68,000, it could begin a significant rally towards the $263,000 target, fueled by increased investor confidence and significant buying pressure.
It’s worth noting that Bitcoin initially rose to $68,000 earlier in the week following news that President Joe Biden had dropped out of the presidential campaign.
At the same time, investors are predicting a resumption of bullish sentiment with the launch of Ethereum (ETH) exchange-traded funds (ETFs) in the United States. Indeed, the influx of capital into these products is likely to have a positive effect on the market, influencing other assets such as Bitcoin.
Bitcoin Gives Buy Signal
On the other hand, analysts also point out that Bitcoin is giving buy signals in the short term. For example, an analysis conducted by Mikybull Crypto pointed out that Bitcoin has triggered a rare Hash Ribbon Buy signal, indicating potential for significant price growth in the near future.
This technical indicator, which analyzes the Bitcoin network hashrate, is highly regarded for predicting explosive price movements. Historically, the Hash Ribbon Buy signal has often preceded significant upward trends in Bitcoin price.
Notably, the current chart analysis matches the Wyckoff accumulation pattern, suggesting that Bitcoin may be in the final stages of accumulation before a strong bullish breakout. Bitcoin’s hashrate has shown signs of recovery, marking the end of a period of capitulation when mining profitability was low.
Bitcoin Price Analysis
At press time, Bitcoin was trading at $66,356, with daily losses of less than 0.1%. On the weekly chart, Bitcoin is up more than 2%.
Based on recent price action, investors should keep an eye on the $65,000 support zone, with $70,000 resistance being the primary target.
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