Despite a recent market crash that tested its resilience, Bitcoin has demonstrated its strength by maintaining a price above $60,000. As investors anticipate the next major rally, analysts are identifying bullish technical patterns that suggest further gains are on the horizon.
Milkybull Crypto, a prominent crypto analyst, has highlighted a bull flag pattern in Bitcoin’s price action. This formation, typically observed after an upward move, is considered a bullish continuation signal. Bitcoin’s current consolidation within this pattern indicates a potential pause before another upward leg. If the price breaks above the flag’s upper boundary, a significant surge could follow.
Supporting this bullish outlook, moving averages have aligned favorably. The golden cross, where the shorter-term moving average crosses above the longer-term moving average, remains intact. This signal provides dynamic support at lower levels, reinforcing the possibility of further gains.
For Bitcoin to reach the $67,380 target, it needs to rally by approximately 5.58% from its current level. This projection has captured the attention of traders, many of whom are optimistic about the potential for the bullish pattern to play out.
Historical trends provide additional reasons for optimism. Quinten François, co-founder of WeRate, has pointed out Bitcoin’s impressive performance during the fourth quarter in previous years. October, November, and December have often been marked by substantial gains, with Bitcoin averaging a 22.9% increase in October alone. Notably, in 2017 and 2020, October saw Bitcoin surge by 47.81% and 27.7%, respectively.
November has historically been even more bullish, with an average gain of 46.81%. December also contributes to Q4’s positive reputation, with an average gain of 5.45%.
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Henrik Zeberg, Head Macro Economist at Swissblock AG, remains optimistic about Bitcoin’s prospects despite recent volatility. In a recent report, Zeberg revised his forecast, predicting Bitcoin to reach a new peak between $115,000 and $120,000. This projection aligns with his broader outlook for gains in other major indices like the S&P 500 and Nasdaq.
Zeberg’s forecasts reflect confidence in a blow-off top scenario, where market euphoria could drive Bitcoin to unsustainable levels before a significant correction.
Disclaimer:Â The information in this article is for general purposes only and does not constitute financial advice. The authorâs views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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