Bitcoin (BTC) has shaken off months of stagnation, sparking a breakout that points to a renewed bullish trajectory, with one analyst eyeing a potential surge to $88,000 by the end of 2024.
After reclaiming the $65,000 mark, bullish momentum is rapidly building for an “Uptober” rally, driven by strong technical indicators and patterns that mirror previous price surges.
Notably, Bitcoin’s current cycle exhibits fractal patterns similar to those seen in past rallies, particularly the surge from October 2023 to March 2024, as highlighted by TradingShot.
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“Bitcoin has started to live up to the ‘Uptober’ meme as in recent days it picked up the pace and broke above the top of the Triangle. Based on this, we see $88000 as a strong possibility by December.”
– TradingShot
Fractal patterns and key technical indicators
According to the analysis, Bitcoin’s current price action mirrors the fractal patterns that drove the powerful rally from October 2023 to March 2024.
Both cycles traded within a Triangle pattern and bottomed out with an Inverse Head and Shoulders (IH&S) pattern, a strong reversal signal that often precedes bullish moves.
The bottom took place at the same time as the Death Cross formation, where the 50-day moving average (MA50) crossed below the 200-day moving average (MA200), signaling the end of the bearish trend.
In 2023, Bitcoin saw significant upside momentum after breaking above the Lower Highs trendline of the Triangle, resulting in a rally toward the 2.0 Fibonacci extension, aligning with the projected $88,000 target for this year’s cycle.
With Bitcoin now having broken above the same trendline in October 2024, a similar breakout appears likely.
While Bitcoin is targeting $88,000 by year-end, long-term projections suggest even higher levels could be in play.
Cryptocon, a notable market analyst, has identified a potential high of $240,000 based on the Consecutive Candles 9 (CC9) indicator. This technical signal, combined with the current bullish momentum, points to a strong long-term outlook for Bitcoin beyond the current cycle.
External catalysts fueling the rally
Currently, Bitcoin has surged to a three-month high of $67,800, reflecting a 9.45% gain over the week. This rally comes just weeks before the U.S. presidential election, sparking speculation that political developments may influence Bitcoin’s price.
Former U.S. President Donald Trump, once a vocal critic of cryptocurrencies, has now emerged as a supporter, further fueling optimism in the market. His highly anticipated World Liberty Financial (WLFI) initial token sale was held recently, adding to the growing optimism.
Additionally, large institutional players continue to show confidence in Bitcoin. Tesla recently moved $760 million from its Bitcoin holdings, while MicroStrategy (NASDAQ: MSTR) is advancing its plans to become the world’s first “Bitcoin bank,” further attracting institutional interest.
Bitcoin price analysis
As of press time, Bitcoin was trading at $67,797, up by 1% in the last 24 hours. On the weekly chart, BTC is up by 9%.
If history repeats itself, Bitcoin could see a sharp rise, potentially surpassing intermediate resistance levels before hitting the Fibonacci extension target.
Investors should closely monitor these technical patterns as they continue to align with the broader bullish outlook for Bitcoin.
