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Bitcoin has been on a tear recently, reaching an all-time high of $89,604 on November 12, 2024. As the word spread of this large number of Bitcoins, there is now widespread interest and speculation as to what its future price might be. At a market value of $88,564, the token’s market capitalization has rocketed to around $1.75 trillion, making it one of the cryptocurrency’s strongest players.
The history of Bitcoin price cycles manifests the same pattern over multiple years. Each cycle is 396 days of growth, 1,065 days of consolidation, and additional growth. As shown in the blue boxes below, the cryptocurrency’s volume typically spikes sharply during its’ bull markets, indicating strong buying interest.
Bitcoin always follows the fractal pattern, which is evident in the 2016 and 2020 cycles and is now mirroring the same pattern in 2024, which is a cycle time duration equal to approximately three years. This regularity suggests that the token’s present cycle could take 2025 to finish, and there would be another enormous value hop to watch before the top. Given previous trends, the Bitcoin cryptocurrency could easily surpass $150k by 2026 if it follows the same historical pattern as past bull markets.
Bitcoin Parabolic Breakout Suggests Potential to Reach $220K-$320K
The chart presented by Gert van Lagen shows BTC’s price shift over the years and an outlook for its possible future trends that emulates a staircase. The analysis indicates that the token has formed a parabolic breakout from Base 4 and strengthened the setup, giving a potential target price of $220k-$320k. This movement suggests that the token is most probably in the last part of the ongoing rally.
$BTC [1W] – Update on the step-like formation.
Price has broken parabolically out of Base 4, validating the setup to reach the $220k-$320k target zone.
Blow-off wave 5 within (5) within ⑤ has started, full validation!
Keep laughing at me 😋 pic.twitter.com/GIwq5D9lEK
— Gert van Lagen (@GertvanLagen) November 11, 2024
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Also, Gert considers that the “Blow-off wave 5” has commenced as part of wave 5, which lies within the larger wave structure (labeled as 5 within 5). This offers an outright endorsement of the forecast and bolsters the view that the trends in the Bitcoin price are consistent with a predefined template that should propel it to the upper target area.
Moreover, the chart indicates the current market is in a ‘bear trap’ since the prevailing price action explains the market’s distribution and models a considerable surge. This technical analysis has a bullish bias in Bitcoin’s case since it can potentially explode to the upside and reach new all-time highs as it progresses through the last phases of its wave structure.
Bitcoin Faces Major Liquidation Risks at $89K, Both Longs and Shorts
The graph reveals that the BTC token has a clear liquidation zone where upside and downside movements are equally well supported. On the red cumulative long liquidation leverage, the price range of around $87,643 to $89,000 has a decent spike. This suggests that the risk for taking long positions is substantial, as a price move into this zone may set off a chain of sell-offs, which in turn would mean the closure of long positions, thereby increasing downward movement.
On the other hand, short positions are building up around the same $89,000 mark, as represented by the yellow and blue bars that depict short liquidation leverage, which is on the upside. If the cost of the cryptocurrency reaches over the $90,000 mark, this could trigger a short squeeze, which occurs when short sellers have to engage in forced buying to cover their positions, thus resulting in a price increase. Hence, the $87,900 to $90,000 range becomes the most important as it offers the possibility of both long liquidations followed by a short squeeze depending on the price action.