Chris Vermeulen, Chief Market Strategist of The Technical Traders.com, recently opened up about Bitcoin price and trends in a conversation with David Lin. Chris expressed his belief that Bitcoin is poised to climb higher despite Bitcoin’s inability to break beyond the $70k levels.
Chris explained that Bitcoin has formed a basing formation, suggesting a critical level on the chart. This formation resembles a cup and handle pattern, considered one of the strongest, particularly when built in a basing formation. Breaking out of this level, Bitcoin’s price is now surging higher.
There are several interesting levels to consider, with the Fibonacci extension being one of the most accurate methods to forecast price momentum. Applying the Fibonacci extension to the chart pattern provides upside targets for Bitcoin’s price movement.
Following a pullback and subsequent rally, the next stop in this rally indicates a target of around $80,000, with a potential further upside to $90,000. Chris believes Bitcoin can go even higher, depending on historical trends.
He said, “If we apply Fibonacci extension, which is the start of this breakout rally and down to the pullback we saw just a month ago, this projects for where Bitcoin could go, which is dramatically higher. This brings us up to about $87,000 and $106,000.”
Using the monthly chart and Fibonacci analysis, Chris took a broader perspective and pointed out potential targets for Bitcoin’s upward trajectory. While he admitted he wasn’t a Bitcoin expert, he noted that Bitcoin and gold are perceived as an alternative currency.
Both assets are experiencing upward movement, potentially due to concerns about the dollar and stock market stability. Chris speculated that this trend suggests a looming crisis prompting investors to seek refuge in alternative assets like Bitcoin and gold.
“There’s a lot going here. Now, there will be some resistance area at $100,000. Typically, on whole numbers like $100,000, there’s going to be sellers lurking up there,” he added.
If Bitcoin rallies to the above-mentioned point, it could trigger a wave of selling, potentially leading to a pullback or consolidation for several months. However, Chris believes that hitting $100,000 is the next milestone for Bitcoin, possibly occurring over the next four to six months based on the current chart pattern.
