Bitcoin may be hovering below its all-time highs, but analysts are turning bullish based on a rare chart formation. Taking to X, the analyst observed that BTC has closed two consecutive months above the upper Bollinger Band on the monthly chart.
A Rare Bollinger Band Signal Prints: BTC To $140,000?
The analyst said that historically, when Bitcoin closes two consecutive months above the upper Bollinger Band on the monthly chart, prices tend to double within three months. If this pattern holds, Bitcoin will surge to over $140,000 by July 2024, just three months after the Bitcoin halving event.
Bitcoin is trading below $73,800, the all-time high registered in March 2024. However, after weeks of lower lows, the sharp recovery earlier on April 8 suggests buyers could be flowing back. At press time, the coin is changing hands above $71,800, convincingly breaking above the liquidation level of around $72,000.
Despite the bullish breakout, whether the uptrend continues remains to be seen. Of note is that BTC prices tend to collapse before the Halving, which is set to take place in the coming weeks, dumping to as low as 20%. BTC fell after peaking at $73,800, dropping to around the $60,000 level before snapping back higher to current levels.
A refreshing close above $74,000 might form the basis of even more gains in the days ahead, perhaps towards $100,000 in the weeks ahead.
Another analyst suggests that Bitcoin could rally to $140,000 within four weeks, especially if it follows a similar price pattern to December 2020. After breaking above the $20,000 high of 2017, Bitcoin continued to rally, peaking at around $70,000 for a nearly 3X surge.
Currently, buyers are eyeing the $74,000 mark and the all-time high. If this level is surpassed, as it was in late 2020, the possibility of Bitcoin at least doubling to $140,000 becomes more likely.
Will Halving, Macroeconomic Factors, And Spot ETFs Drive Prices?
The current bullish sentiment might continue. Possible drivers include interest in spot Bitcoin exchange-traded funds (ETFs). So far, billions have been channeled to these products, lifting demand and thus prices. The upcoming Halving event could further buoy demand, lifting prices even higher in the coming months.
Beyond Bitcoin-driven fundamentals, analysts are also looking at market events, especially in the United States. Some speculate that the United States Federal Reserve (Fed) might not slash interest by at least three times this year as labor conditions become firm and inflation slows down.
If the Fed reduces interest rates, reversing their hawkish outlook, BTC could lead other safe havens in an uptrend.
Feature image from DALLE, chart from TradingView
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