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Bitcoin (BTC) to Skyrocket 220%, According to ‘Bullish Megaphone’ Model
Armani Shirinyan
If this extremely rare pattern materializes, we will see Bitcoin climb much higher.
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Bitcoin is slowly but surely rallying, with the price gaining some stability around the $56,000 price level. Unfortunately, the purchasing power is not there, and the market clearly needs another push. The so-called “bullish megaphone” model could be the answer.
An indication of the potential for a significant increase in technical analysis is often shown by bullish megaphone pattern. Known by another name, this pattern consists of two diverging trend lines, one down and one up, giving the chart the appearance of a megaphone.
Price movements are expanding between the two trend lines, exhibiting an increasing degree of volatility characteristic of this pattern. It usually develops following a phase of sideways trading or consolidation, indicating that the asset is preparing for a breakout. Here’s how it works:
Formation: When prices fluctuate between higher highs and lower lows, the pattern begins to take shape. The megaphone shape is produced by price swings that become larger than the previous one.
Increased Volatility: Volatility increases as the pattern develops. As the magnitude of price movements increases, the market often becomes confused and uncertain. An important aspect of the Bullish Megaphone Pattern is its increase. volatility.
Breakout: The definitive breakout of this pattern is its defining characteristic. This breakout usually occurs through the upper trend line for a bullish megaphone. The breakout, supported by increased buying interest and trading volume, denotes strong upward momentum.
Target Price: Following a breakout, the target price is typically determined by measuring the height of the pattern at its widest point. The potential upside is then calculated by adding this measurement to the breakout point.
About the author
Armani Shirinyan
Arman Shirinyan is a trader, cryptocurrency enthusiast and SMM expert with over four years of experience.
Arman firmly believes that cryptocurrencies and blockchain will be in constant use in the future. Currently, he focuses on news, articles with in-depth analysis of crypto projects and technical analysis of cryptocurrency trading pairs.