Analyst Ali forecasts Bitcoin's price potential up to $255,000 due to a cup-and-handle pattern formation. We discuss the significance of this pattern and key resistances along the way.
Cup-and-Handle Pattern and Ali's Projection
Analyst Ali has identified the formation of a cup-and-handle pattern on the Bitcoin chart, which may indicate a significant upward price movement. This pattern, characterized by a rounded bottom followed by a brief consolidation or minor pullback (referred to as the handle), is known to pave the way for a bullish breakout.
Ali noted that the price of Bitcoin began forming this pattern from early 2023, with the handle phase marked by a consolidation around $65,000 before a potential breakout. If the pattern holds, Ali's projected price target of $255,000 aligns with the 2.272 Fibonacci extension level, an effective tool for measuring potential targets within a bullish trend.
Key Resistance Levels on the Path to $255,000
Despite the bullish projection, Ali warns of potential significant resistance levels along the path to $255,000. One such level is the 1.618 Fibonacci level around the $154,699 mark, which could act as a considerable barrier due to Bitcoin's recent price increase.
Should Bitcoin manage to surpass this intermediate resistance, it could pave the way for a more substantial rally. The target of $255,000 at the 2.272 Fibonacci level, if achieved, would be a remarkable milestone for the cryptocurrency. The continuation of this rally will require increased buying interest and trading volume.
Current Bitcoin Price Analysis
On the daily charts, Bitcoin remains in a clear bullish trend, but short-term overbought signals might be present. Bitcoin has recently crossed the upper Bollinger Band, reaching an all-time high of $93,295.24.
Ali’s forecast of Bitcoin's price rise to $255,000 offers an upbeat outlook for investors. However, to achieve this target, it is crucial to overcome key resistance levels and attract higher buying interest.
