Bitcoin Surges Past Resistance, Analyst Sees Potential for Major Rally Toward $126,000

• Bitcoin’s breakout above $65,843 hints at a 77% gain, with bullish momentum pushing above $67,238.99 previous target.
• Rising RSI signals increased bullish momentum, while volume could confirm Bitcoin’s advance to $67,238.99.
• Bitcoin’s EMAs show a bullish crossover, with price nearing $70,000 and potential gains targeting $72,000-$75,000.

Bitcoin has demonstrated strong bullish momentum recently, as noted by analyst JavonTM1. The cryptocurrency has broken out of key technical patterns and is displaying bullish divergences on major indicators. 

This upward trend aligns with a broader bullish sentiment, highlighted by specific metrics that point to potential price gains ahead. The analyst projects a major move toward a logarithmic target of $126,000.

Price Action Breakout and Technical Patterns

From April to September 2024, Bitcoin formed an ascending triangle pattern, hinting at rising buying pressure. Recently, Bitcoin broke above the crucial resistance level of $65,843.87, a development that suggests a bullish continuation. The pattern’s breakout indicates strong buying interest. 

This projection marks a potential 77% increase from the breakout level, emphasizing the upward trend. Additionally, a hidden bullish divergence appeared on the Relative Strength Index (RSI), which did not align with Bitcoin’s consolidation. The RSI is currently around 53.9, reflecting neutral momentum, with signs of further upward movement as buying continues.

Momentum Indicators and Volume Insights

The rising RSI indicates a potential increase in bullish momentum. Major breakouts often require a surge in trading volume to confirm the move. If the volume supports the breakout, it would strengthen the likelihood of reaching the $67,238.99 target. 

The height of the ascending triangle pattern has been used to predict this target, aligning with historical price movements in such breakouts. Should Bitcoin sustain its current momentum, the $50,000 resistance zone may present the next challenge before advancing toward the projected target.

Immediate Trends and Key Levels

At press time, Bitcoin was trading at $68,752.73, a 2.42% increase in the past 24 hours. Bitcoin shows a series of higher lows and highs, maintaining a gradual uptrend since mid-October. Two Exponential Moving Averages (EMAs) add to this bullish scenario: the 50 EMA at $67,370.78 and the 200 EMA at $65,090.48.

Notably, a bullish crossover occurred earlier in the month as the 50 EMA surpassed the 200 EMA, signaling sustained upward momentum. The RSI currently reads 65.48, suggesting bullish momentum but not overbought conditions, allowing room for further gains.

As Bitcoin approaches the psychological barrier of $70,000, monitoring is crucial for potential resistance or profit-taking. If the price maintains momentum above this level, it could push higher toward $72,000-$75,000. Conversely, a pullback below $68,000 may lead to a retest of support at the 50 EMA or, potentially, the 200 EMA.