Bitcoin Eyes $340,000 if Key Support Remains Strong
A prominent crypto analyst, known as PlanD on social media platform X, has reiterated his bullish outlook for Bitcoin, suggesting that the leading cryptocurrency is still poised for a substantial upward trajectory. Despite experiencing notable price corrections over the past week, he emphasizes that Bitcoin is on track to reach an ambitious price target of $340,000, provided a crucial support level remains intact.
Key Support Levels and Market Sentiment
As detailed in a recent post on X, PlanD highlights that for Bitcoin to maintain its bullish momentum, it must sustain a support structure between $91,000 and $100,000. This range is seen as critical; if Bitcoin maintains trading within this zone, the current corrective phase could be interpreted as a temporary pullback rather than a longer-term bearish trend.
Bitcoin’s Recent Price Action
Having reached an unprecedented all-time high of $111,970, Bitcoin has undergone a minor retracement that saw prices dip just below $104,000. This dip raises questions among investors regarding the strength of the current bull market, particularly in light of turbulence in other financial markets. However, PlanD argues that Bitcoin’s overall price action aligns with a three-year cup and handle chart pattern, a technical formation often indicative of bullish momentum.
Understanding the Cup and Handle Pattern
The cup-and-handle pattern, characterized by a distinctive U-shaped formation followed by a downward drift (the handle), suggests that Bitcoin may soon break into a new price discovery phase once it surpasses resistant levels. The left side of the cup was formed during Bitcoin’s significant decline from its previous all-time high of $69,000 in November 2021. This decline was followed by a stabilization period that lasted until March 2024, during which Bitcoin gradually recovered to the $69,000 threshold.
The ‘handle’ phase extends from March 2024 until October 2024, manifesting as a series of lower highs in a descending channel. Should Bitcoin succeed in breaking above the neckline at approximately $76,000, analysts anticipate it will gather sufficient upward momentum to challenge the current all-time high and potentially reach the $340,000 milestone before the close of 2025.
Market Indicators and Volume Analysis
As of now, Bitcoin is trading at $104,739, registering a minor gain of 0.64% in the past 24 hours. This modest increase occurs amid a fluctuating daily trading volume of approximately $40.03 billion, reflecting a robust 31.28% uptick from the previous day. This volume surge may suggest renewed interest and buying pressure from investors willing to capitalize on temporary price dips.
Resistance Levels to Watch
To transition back into a clear bullish momentum, Bitcoin must contend with key resistance levels, specifically at $106,000 and $109,000. Overcoming these barriers would not only restore confidence among bullish traders but would also neutralize some of the bears’ influence, likely paving the way for a stronger rally towards previously targeted highs.
Implications for Investors
For those considering exposure to Bitcoin, understanding the underlying technical analysis and market sentiment is crucial for making informed investment decisions. PlanD’s observations suggest that investors should remain vigilant, as the current price fluctuations imply both risk and opportunity. Should Bitcoin hold above the critical support level of $91,000-$100,000, the prevailing narrative appears to skew positively towards an eventual breakout.
“The ongoing correction is merely a prelude to significant upward movements if the support level holds,” PlanD emphasizes in his analysis.
Conclusion: A Bullish Outlook If Structure Holds
In summary, Bitcoin’s potential to reach a $340,000 target hangs delicately on its ability to remain above key support levels. Market participants should keep a close watch on the price movements and trading volumes in the coming days to gauge whether the bullish sentiment can withstand current pressures.
Investors looking to navigate this exciting yet volatile landscape are encouraged to conduct thorough research and consider the implications of market trends before making investment decisions.
Featured image from Getty Images, chart from Tradingview
Source: newsbtc