Sarah Tran
Independent Analyst
- Bitcoin price is ready for a significant ascent, as the governing chart pattern and a technical indicator suggests a recovery is in the offing.
- Analysts expect the leading cryptocurrency’s price to double by the end of the year.
- The prevailing chart pattern suggests that $88,000 is an easy target for BTC price to reach.
Bitcoin price is consolidating as it continues to trend sideways following its all-time high earlier this month. However, a technical pattern suggests that the retracement may soon be over, and the leading cryptocurrency’s next target appears to be at $88,000.
Bitcoin price prepares for major rally
After hitting a new all-time high in early November, analysts continue to bet on Bitcoin to double in value before the end of the year. Analyst Plan b believes that the flagship cryptocurrency will reach $98,000 by the end of November, and set a $135,000 target for December.
Analysts expect Bitcoin price to rise further as more BTC exchange-traded funds get approved in the United States, boosting the leading cryptocurrency’s legitimacy as an investment asset.
Morgan Stanley also seems to be bullish on Bitcoin, as recent US Securities & Exchange Commission (SEC) filings reveal that it has increased its indirect exposure to the world’s largest cryptocurrency by market capitalization. The firm acquired over 2.6 million Grayscale BTC Trust shares worth around $118 million between June and September this year.
While Bitcoin continues to witness growing adoption, BTC price appears to be headed for a major upswing, as the leading cryptocurrency formed an ascending parallel channel pattern on the daily chart.
The governing technical pattern suggests that Bitcoin price could be headed toward $87,912 next, tagging the upper boundary of the parallel channel, coinciding with the 161.8% Fibonacci retracement level.
However, before Bitcoin price is able to reach the optimistic target, BTC will confront its first hurdle at the 61.8% Fibonacci retracement level at $58,045. Conquering this level will see the flagship cryptocurrency aim for $61,168, where the 21- and 50-day Simple Moving Averages (SMA) meet.
Additional headwind will emerge at the 78.6% Fibonacci retracement level at $63,062, then at the middle boundary of the parallel channel at $66,433, corresponding to the resistance line given by the Momentum Reversal Indicator (MRI). The 127.2% Fibonacci retracement level could also act as the following hurdle for Bitcoin price at $77,578.
The MRI also printed a bottom signal on November 23, suggesting that Bitcoin price action is about to reverse the period of underperformance.
BTC/USDT daily chart
However, if Bitcoin price fails to witness a recovery, an increase in selling pressure could see BTC fall toward $54,520, where the 50% retracement level, lower boundary of the parallel channel, 100-day SMA and the MRI’s support line meet. This area should act as sturdy support for the leading cryptocurrency.
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