- The price of bitcoin could surge 40% to $100,000, according to technical analyst JC Parets.
- Parets said the longer bitcoin is trading above $70,000, the more likely it is to breakout.
- "I think if it's got a 70 handle, if you're above 70, I think you own it for a trade and then some," Parets said.
Bitcoin is on the verge of a big technical breakout if it can surge past its former record high of about $73,800.
According to technical analyst JC Parets of AllStarCharts, the longer bitcoin trades above $70,000, the more likely it is to climb to $100,000.
The cryptocurrency was trading at $71,312 at 10:16 am ET.
"The idea was we [bitcoin] were gonna get to [$]47[,000], take a break, get to [$]70[,000], take a break, and then ultimately breakout to a [$]100[,000]," Parets said on a Trends with Friends podcast episode late last month.
So far, so good, according to Parets.
"Well, we got to [$]47[,000], we took a break. We broke out got to [$]70[,000], we're taking a break. Like this is perfectly normal. There are kind of steps along the way. I think if it's got a 70 handle, if you're above 70, I think you own it for a trade and then some," Parets said.
A $100,000 price target for bitcoin represents potential upside of 40% from current levels.
"I think it ultimately can go higher than that but that's sort of the next step. But step one, now we gotta clear these levels. I don't know how long it's gonna take. It could take weeks, could take months, could take years. It has yet to absorb that overhead supply so we'll see how long it takes," Parets said.
The price of bitcoin has surged over the past year after recovering from a brutal bear market in 2022.
Now the cryptocurrency is forming a classic technical pattern, called a "cup and handle".
That's a bullish pattern that resembles a cup, formed by a basing pattern that typically looks like a "U," followed by a handle that is formed by a short-term down trend.
Once a security breaks out above the handle, a technical analyst would buy the stock. This pattern usually extends an uptrend that is already in place.
A trader could generate a measured move price target by measuring the depth of the cup in price, and add that amount to the lid of the cup.
In the case of bitcoin, it has a measured move price target of about $130,000 if the bullish cup and handle pattern materializes.
