Bitcoin (CRYPTO:BTC) may be on the brink of a significant breakout, with one analyst forecasting that the cryptocurrency could surge to unprecedented heights.
Gert van Lagen, a well-known technical analyst, has suggested that Bitcoin could reach $200,000 during its current cycle.
This prediction is based on a parabolic Cup and Handle pattern that has been forming on Bitcoin’s weekly chart since 2021.
Bitcoin appears to be moving within the "handle" portion of this pattern, which often precedes a bullish continuation.
Van Lagen's analysis points to a potential "banana zone" rally, a term coined by Raoul Pal to describe a period of explosive growth for Bitcoin and other cryptocurrencies.
If this pattern plays out as expected, Bitcoin could experience a significant upward move.
Adding to this bullish outlook is the Long-Term Holder Market Inflation, a metric that tracks the rate of accumulation or distribution among long-term Bitcoin holders.
Recent data shows that this metric has been decreasing since early August, indicating that long-term holders are accumulating Bitcoin at a faster rate.
Historically, a decline in market inflation has preceded major price rebounds for Bitcoin, suggesting that a notable rally could be on the horizon.
In the short term, Bitcoin faces key levels that could determine its next move.
On the 4-hour chart, the cryptocurrency shows signs of exiting its recent drawdown, with a potential buy signal that could push its price toward $64,240.
However, critical support levels at $61,839 and $60,680 must hold for this bullish scenario to unfold.
If Bitcoin fails to maintain its momentum above $61,839, it could face a deeper correction, potentially dropping below $60,000.
Beyond technical analysis, Bitcoin has also seen significant inflows into Bitcoin ETFs over the past ten days, mirroring conditions that led to its all-time high in March.
If these inflows continue, Bitcoin could rally towards $70,000 in the near term.
Analyst Michaël van de Poppe has also suggested that Bitcoin could reach a new all-time high if it holds above $62,000, reinforcing the potential for a major upward move.
However, the bullish outlook could be invalidated if Bitcoin fails to maintain key support levels, leading to a possible downturn.
As Bitcoin navigates these critical levels, the coming weeks could be decisive in determining whether it will achieve the anticipated $200,000 target or face further challenges.
At the time of writing, the Bitcoin price was $59,045.46.