Bitcoin price could be on the brink of a significant rally
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According to trader and crypto analyst Gert van Lagen, the Bitcoin market is gearing up for a significant shift.
In a tweet shared with his followers, van Lagen highlighted the formation of a “perfect head and shoulders low” below the weekly simple moving average (SMA) over the past 200 days. This pattern is typically viewed as a bullish signal.
Image by @GertvanLagen
Van Lagen’s tweet also explained a successful double bullish retest of the neckline/SMA200, indicating strong upside potential.
He also pointed to a “perfect bear trap” that he believes is now complete. This claim signals that bearish traders who may have been anticipating further declines may find themselves on the wrong side of an eventual price rally, hence the term ‘bear trap’.
Van Lagen’s analysis of Bitcoin’s development assumes a “blowoff top”, a sharp rise in price.
JPMorgan’s Latest Bitcoin Prediction
The bullish analysis aligns with recent forecasts by banking giant JPMorgan. The company’s strategists, led by Nikolaos Panigirtzoglou, predict a potential Bitcoin value of $45,000. They argue that given the soaring price of gold – now over $2,000 – and the total value of gold held for investment purposes outside of central banks, that figure for Bitcoin is around $3 trillion.
It is believed that, volume-adjusted for venture capital, Bitcoin could catch up with gold in private investors’ portfolios.
Bitcoin is currently priced at $26,783, according to CoinGecko, down over 60% from its all-time high of $69,044.77 in November 2021.
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