A recent analysis suggests Bitcoin is poised for a massive price surge. This prediction is based on a technical pattern known as an Inverse Head and Shoulders breakout.
The Inverse Head and Shoulders Pattern
Crypto analyst Gert van Lagen spotted an Inverse Head and Shoulders pattern on Bitcoin’s price chart. This pattern, a classic technical indicator, often signals a shift from a bearish (downward) trend to a bullish (upward) trend. The pattern consists of:
- Left Shoulder: A price dip followed by a recovery.
- Head: A deeper price drop, marking the lowest point.
- Right Shoulder: A smaller dip, followed by a breakout above the “neckline” (a line connecting the lows of the left and right shoulders).
Bitcoin recently broke through this neckline around $86,972, and a successful retest of this level further strengthens the bullish signal.
$300,000 Target and Potential Sell-Off
Based on the measured move of this pattern, Lagen predicts Bitcoin could reach $300,000 – a massive increase of over 250% from its current price. However, he also identifies a potential sell-off zone between $340,000 and $380,000 where traders might take profits.
Further Supporting Evidence
Lagen’s analysis also includes a “parabolic step-like” formation on the chart, aligning with the Elliott Wave theory. This suggests a strong final wave could drive prices significantly higher.
A Crucial Support Level
While optimistic, Lagen emphasizes that a drop below $72,900 could invalidate his prediction, potentially leading to a deeper correction.
Recent Price Action: A Temporary Setback?
Despite the bullish prediction, Bitcoin has recently experienced a significant price drop. In the last 24 hours, it lost almost all gains made after a previous announcement, falling by over 9%. This drop puts Bitcoin’s price significantly lower than the analyst’s neckline. Whether this is a temporary setback or a sign of trouble remains to be seen.
