Sen told his 270,000 X followers on Thursday that Bitcoin has just completed a multi-year cup-and-handle pattern with a breakout and perfect retest. This structure, which took years to build, has now been confirmed, he added.

“Cup-and-handle breakouts don’t move 20%, the move hundreds of percent,” he said before making a bold price prediction.

“The launch is next … $220K is the minimum target.”

Previous Patterns Ended in Big Breakouts

The cup and handle is a classic bullish continuation pattern in technical analysis. It resembles a teacup on a chart, and a breakout above the handle’s resistance often signals strong upside, with a measured target equal to the cup’s depth added to the breakout point.

Bitcoin has formed this pattern previously, often preceding major rallies. During the 2020 to 2021 cycle, a multi-month cup formed from 2019 highs down to the 2020 low, with a handle in summer 2020. The breakout led to the run toward the peak at $69,000 in November 2021. Through 2022 and 2023, Bitcoin formed a massive, rounded bottom on the weekly chart as institutional accumulation picked up.

By early 2024, the price consolidated in the $60,000 to $69,000 range, forming the handle, before an explosive breakout to over $100,000. However, there may be a little further to go with this handle, as many analysts have targeted October as the bottom and cycle inflection point.

Swissblock reported that Bitcoin’s Risk Index peaked in late June before transitioning into low risk, “allowing selling pressure to ease and price to stabilize.”

However, a divergence is forming with Bitcoin risk remaining subdued while the VIX has returned to the fear zone. The VIX is the CBOE Volatility Index, which is often called the “fear index” as it measures the market’s expectation of 30-day forward-looking volatility in the S&P 500.

A rising VIX often signals deteriorating market conditions that weigh on BTC, while a low and stable VIX supports risk appetite favorable to crypto.

“If the VIX continues rising and Bitcoin Risk reignites, the canary will begin singing again,” said Swissblock.

The $220,000 price prediction comes just after another one, a lot more bullish, set a massive target of up to $450,000 per BTC. The time horizon for that one is by March 2028.

BTC Price Outlook

Bitcoin has been choppy over the past 24 hours following the Federal Reserve decision to keep rates unchanged. The asset tapped intraday highs of $64,500 three times before retreating to the high $63,000 zone during the Thursday morning Asian trading session.

Volatility could increase as the US has resumed military strikes on Iran late on Wednesday. “The strikes are a powerful response to yesterday’s attempted Iranian attacks on US forces based in the Middle East,” stated Central Command.

Source: CryptoPotato