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- The Cup and Handle formation for Bitcoin forecasts an upswing to $70000; the price target for the long term is $126,107.
- That means there are $21 billion of leveraged short positions at risk to be liquidated if Bitcoin climbs up to $70,000.
- The last surge to $48,000 may be a “final flush” before the price spike, and this may provide buying points.
Bitcoin traders have been closely observing a rally to $70,000 which is forming as the “Cup and Handle” formation. This formation was initiated in August and remains a primary technical signal with analysts expecting the price to reach $126,107. Focusing on the Chinese exchange and the imminent election in the United States, the anticipated course of prices is further boosted.
#Bitcoin Cup and Handle was triggered in August and remains in play as the primary pattern. Target remains $126107. Confluence to US Election is clear.
— MartyParty (@martypartymusic) October 6, 2024
Notes: Expect a 10-20% chance of a V shaped final flush to clear longs before the mark up.
Spot traders dont need to do… pic.twitter.com/4C7RxDc8Cl
Much emphasis is placed on the $21b of leverage short positions that are currently open. If Bitcoin rises to $70,000, it is expected to trigger a wave of short liquidations, as short merchants are in trouble. This compile of shorts at this level has brought about a situation where any upward movement can force the Bitcoin price to rally due to liquidations.
Possible Fall in the Market Before the Rise
However, there is likelihood that the market is going to be pulled back before it gets to the expected upswing. They’ve cautioned that there may be a final squeeze, which entails BTC plunging to force leveraged longs to cash out. This dip could carry the price as low as $48 000 before the price hikes again.
The long-term spot traders should hold their positions because the market will bounce back shortly. Such a situation means that exchanges can close for a short period implying that the traders cannot take advantage of the low price.In this case, some limit buy orders could be placed within the range of $48800- $52000, so as to make profits when the predicted nosedive occurs.
For those who are in a leveraged position, it may be possible to buy long limit orders between $48,000 and $58,000 to capture the downside in case of a market drop. These orders incurred no startup fee and may have substantial potential for gains should the market recover as anticipated.