Bitcoin may be trading below all-time highs, but analysts are turning bullish based on an unusual chart formation. Focusing on X, the analyst observed that BTC ended above the upper Bollinger Bands on his monthly chart for the second month in a row.
Unusual Bollinger Bands signal displayed: BTC to $140,000?
Analyst Said Historically, when Bitcoin closes above the top of the Bollinger Bands on a monthly chart for two consecutive months, the price tends to double within three months. If this pattern holds, Bitcoin will skyrocket to over $140,000 by July 2024, just three months after the Bitcoin halving event.
Bitcoin is trading below its all-time high of $73,800, set in March 2024. However, after weeks of low prices, the sharp rebound on April 8th suggests that buyers may be reversing. At the time of writing, the coin is hovering above $71,800, firmly above the liquidation level of around $72,000.
Despite the bullish breakout, it remains to be seen whether the uptrend will continue. Notably, BTC prices are likely to crash ahead of the halving scheduled in the coming weeks, dropping by up to 20%. BTC peaked at $73,800 and then declined, dropping to around $60,000 levels before rising to current levels.
A refreshing close above $74,000 could lay the groundwork for further gains in the coming days, perhaps towards $100,000 within the next few weeks.
another analyst suggest Bitcoin could rise to $140,000 within four weeks, especially if it follows a similar price pattern to December 2020. Even after breaking through the 2017 high of $20,000, Bitcoin continued to rise, nearly tripling to a peak of around $70,000.
Buyers are now eyeing the $74,000 level and all-time highs. If Bitcoin surpasses this level, as it did at the end of 2020, it will likely at least double to $140,000.
Do halvings, macroeconomic factors, and spot ETFs drive prices?
The current bullish trend is likely to continue. A possible factor could be interest in spot Bitcoin exchange traded funds (ETFs). Billions of dollars have flowed into these products so far, increasing demand and driving up prices. The upcoming halving event could further increase demand and push prices higher in the coming months.
Beyond Bitcoin-driven fundamentals, analysts are also focusing on market events, particularly in the US. Some believe the U.S. Federal Reserve will not cut interest rates by at least three times this year as labor conditions strengthen and inflation slows.
If the Fed lowers interest rates and reverses its hawkish outlook, Bitcoin could lead other safe-haven assets in an uptrend.
Featured image from DALLE, chart from TradingView
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