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bitcoin investors are still excited in light of a recent breakout towards $66,000. This rally has rekindled bullish sentiment across the market, with many traders now anticipating higher highs for bitcoin and other cryptocurrencies. According to one crypto analyst, this breakout has caused the stochastic indicator to print a signal of a rally that could send bitcoin to the price target of $500,000.
Stochastic Breakout to Send btc Price Above $500,000
Taking to social media platform x, a crypto analyst known as Tarder Tardigrade x.com/TATrader_Alan/status/1845779597176213807″ rel=”nofollow”>highlighted an interesting price breakout with the stochastic indicator. The stochastic oscillator is a momentum indicator used in technical analysis to measure the closing price of an asset relative to its price range over a specific period. Like the RSI, it can help identify overbought or oversold conditions.
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In Trader Tardigrade's analysis, which was accompanied by a detailed BTCUSD monthly candlestick chart, he noted that the stochastic indicator has been moving steadily lower and remained confined within a falling wedge pattern for most of 2024. However , the recent rally in bitcoin price, which was first observed in September and has now resumed in October, triggered a notable breakout of this falling wedge
The analyst emphasized that this stochastic breakout coincided with the formation of a local bottom in the price of bitcoin, around the critical level of $60,000. He further noted that this breakout is not only significant in isolation, but represents the starting point of what he predicts will be a parabolic rally. According to Trader Tardigrade, this breakout sets the stage for bitcoin to reach the $500,000 price target.
When to expect a $500,000 bitcoin?
This interesting bitcoin price projection is supported by a similar pattern following a previous breakout of the stochastic indicator, which also aligned with a local bottom in late 2016. Following that breakout, bitcoin saw an extraordinary price surge over the months. following, culminating in a high of $19,600 in December 2017.
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Following this previous price performance, a similar breakout would see bitcoin continue to rise through the rest of 2024 and all of 2025. In particular, the analyst highlighted a peak of the parabolic rally at $520,000 sometime in 2026.
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$bitcoin Stochastic BREAKOUT twitter.com/search?q=%24BTC&src=ctag&ref_src=twsrc%5Etfw” rel=”nofollow”>$btc Follow the same pattern as the previous cycle. The breakpoint indicates the local bottom at the root of MASSIVE Parabolic RALLY.
Send twitter.com/search?q=%24BTC&src=ctag&ref_src=twsrc%5Etfw” rel=”nofollow”>$btc at $500 thousand pic.twitter.com/LoJwlg2Fko
— Tardigrade Trader (@TATrader_Alan) twitter.com/TATrader_Alan/status/1845779597176213807?ref_src=twsrc%5Etfw” rel=”nofollow”>October 14, 2024
At the time of writing, bitcoin is trading at $65,750 and is up 2.4% in the last 24 hours. A parabolic rally to $520,000 would result in a 690% increase from the current price.
In x.com/TATrader_Alan/status/1845812197659947283″ rel=”nofollow”>another analysis of the daily candlestick chart, Trader Tardigrade highlighted that there are There is no reason to be bearish on bitcoin. at the moment. The price is demonstrating strong momentum, having turned a key resistance falling trend line into support, and is now breaking out of another falling wedge above the falling trend line.
Featured image created with Dall.E, chart from Tradingview.com
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