Bitcoin investors are still dwelling in excitement in light of a recent breakout towards $66,000. This rally has reignited bullish sentiment across the market, with many traders now anticipating higher highs for Bitcoin and other cryptocurrencies. According to a crypto analyst, this breakout has seen the stochastic indicator print a signal to a rally that could send Bitcoin to the $500,000 price target.
Stochastic Breakout To Send BTC Price Above $500,000
Taking to social media platform X, a crypto analyst known as Tarder Tardigrade 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 specified period. Like the RSI, it can help to identify overbought or oversold conditions.
In Trader Tardigrade’s analysis, which was accompanied by a detailed BTCUSD monthly candlestick chart, he pointed out that the stochastic indicator has been steadily moving downward and remained confined within a falling wedge pattern for most of 2024. However, the recent rally in Bitcoin’s price, which was first observed in September and has now resumed in October, triggered a notable breakout from this falling wedge
The analyst emphasized that this stochastic breakout coincided with the formation of a local bottom in Bitcoin’s price, around the critical $60,000 level. He further noted that this breakout is not just significant in isolation but represents the starting point for what he predicts to be a parabolic rally. According to Trader Tardigrade, this breakout sets the stage for Bitcoin to potentially surge toward the $500,000 price target.
When To Expect A $500,000 Bitcoin?
This interesting projection of the Bitcoin price is supported by a similar pattern following a previous breakout of the stochastic indicator, which also aligned with a local bottom in late 2016. After that breakout, Bitcoin saw an extraordinary price surge over the subsequent months, culminating in a peak of $19,600 in December 2017.
Going by this previous price performance, a similar breakout would see Bitcoin continue to surge throughout the rest of 2024 and the entirety of 2025. Notably, the analyst highlighted a peak of the parabolic rally at $520,000 sometime in 2026.
$Bitcoin Stochastic BREAKOUT
$BTC has the same pattern as the previous cycle. The breakout point indicates the local bottom at the root of MASSIVE Parabolic RALLY.
Send $BTC to $500kpic.twitter.com/LoJwlg2Fko
— Trader Tardigrade (@TATrader_Alan) October 14, 2024
At the time of writing, Bitcoin is trading at $65,750 and has increased by 2.4% in the past 24 hours. A parabolic rally to $520,000 would translate to a 690% increase from the current price.
In no reasons to be bearish on Bitcoin at the moment. The price is demonstrating strong momentum, having flipped a key descending resistance trendline into support, and is now breaking out of another falling wedge above the descending trendline.