A widely followed crypto analyst believes Bitcoin has completed a long-term technical formation that could pave the way for a rally to at least $220,000.
Vivek Sen told his more than 270,000 followers on X that Bitcoin has successfully confirmed a multi-year cup-and-handle pattern after breaking above resistance and retesting the breakout level.
According to Sen, the setup has been years in the making and now signals the beginning of a much larger move.
“These breakouts don’t typically produce 20% gains—they often lead to moves of several hundred percent,” he said, adding that $220,000 is the minimum price target.
Historic Pattern Has Previously Preceded Major Bitcoin Rallies
The cup-and-handle is one of the best-known bullish continuation patterns in technical analysis. It forms a rounded “cup” followed by a shorter consolidation, or “handle,” before breaking above resistance. The projected price target is generally calculated by adding the depth of the cup to the breakout point.
Bitcoin has produced similar formations in previous market cycles.
During the 2020-2021 bull market, the asset formed a multi-month cup after falling from its 2019 highs into the 2020 market low. A consolidation phase during the summer of 2020 completed the handle before Bitcoin surged to its then-record high of nearly $69,000 in November 2021.
Another large rounded bottom developed throughout 2022 and 2023 as institutional accumulation increased. By early 2024, Bitcoin traded sideways between roughly $60,000 and $69,000, forming another handle before eventually breaking above $100,000.
Some analysts, however, believe the broader cycle has not yet fully played out, with October still viewed by many as a potential market bottom and turning point.
Risk Indicators Paint a Mixed Picture
Market intelligence platform Swissblock recently reported that Bitcoin’s Risk Index peaked in late June before falling into a low-risk zone, helping reduce selling pressure and stabilize prices.
At the same time, analysts noted a growing divergence between Bitcoin’s improving risk profile and the CBOE Volatility Index (VIX), commonly referred to as Wall Street’s “fear index.”
A rising VIX typically reflects growing uncertainty in traditional financial markets and can weigh on risk assets such as Bitcoin. Conversely, a lower and more stable VIX generally supports investor appetite for higher-risk investments.
Swissblock cautioned that if the VIX continues climbing while Bitcoin’s Risk Index also begins to rise again, market conditions could deteriorate.
Sen’s $220,000 forecast follows another high-profile prediction released this week that projected Bitcoin could reach as much as $450,000 by March 2028.
Bitcoin Holds Steady Following Fed Decision
Bitcoin traded in a volatile range over the past 24 hours after the U.S. Federal Reserve left interest rates unchanged. The cryptocurrency briefly tested the $64,500 level three separate times before retreating to the upper-$63,000 range during Thursday’s Asian trading session.
Geopolitical tensions also remain on investors’ radar after the United States resumed military strikes on Iran late Wednesday. U.S. Central Command described the operation as a response to what it called recent attempted Iranian attacks on American forces stationed in the Middle East, adding another layer of uncertainty for global financial markets.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic
