Bitcoin investors continue to live in excitement in the airy recent breakout towards $66,000. This one has it has reignited bullish sentiment across the market, with many traders now expecting higher highs for Bitcoin and other cryptocurrencies. According to a cryptocurrency analyst, this breakout caused the stochastic indicator to print a bullish signal that could propel Bitcoin towards its $500,000 price target.

Stochastic breakout to send BTC price above $500,000

On social media platform X, a cryptocurrency analyst known as Tarder Tardigrade highlighted fascinating price break with stochastic indicator. A 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 specific period. Like the RSI, it can aid identify overbought or oversold conditions.

In a Trader Tardigrade analysis accompanied by a detailed monthly candlestick chart of BTCUSD, he indicated that the stochastic indicator has been steadily moving lower and has remained locked in a descending wedge formation for most of 2024. However, the recent surge in Bitcoin price, which was first seen in September and has now resumed in October, has resulted in a noticeable break from the falling wedge

The analyst emphasized that this stochastic breakout coincided with the creation of a local bottom in the Bitcoin price, around the critical level of $60,000. He further noted that this breakout is not significant in itself, but is the starting point for what he believes will be a parabolic rally. According to Trader Tardigrade, this breakout sets the stage for a potential rally in Bitcoin’s price towards its $500,000 price target.

When can we expect $500,000 worth of Bitcoin?

This fascinating Bitcoin price projection is confirmed by a similar pattern after the previous break of the stochastic indicator, which also reached the local bottom at the end of 2016. Following this breakout, Bitcoin saw a remarkable price surge in the following months, culminating in it reaching a high of $19,600 in December 2017.

Given the previous price performance, a similar breakout would see Bitcoin’s price continue to rise throughout the rest of 2024 and all of 2025. It is worth noting that the analyst highlighted the peak of the parabolic rally at $520,000 sometime in 2026.

Stochastic BREAK $Bitcoin 🔥$BTC has the same pattern as the previous cycle. The breakout point indicates a local bottom at the base of the MASSIVE PARABOLIC RALLY.
Send $BTC up to 500 thousand dollars 🚀 pic.twitter.com/LoJwlg2Fko

— Trader Tardigrades (@TATrader_Alan) October 14, 2024

At the time of writing, Bitcoin is trading at $65,750 and is up 2.4% in the last 24 hours. A parabolic raise to $520,000 would translate into a 690% raise over the current price.

IN another analysis daily candle timeframe chart Trader Tardigrade highlighted that this is the case there is no reason to be bearish on Bitcoin at the moment. Price is showing powerful momentum after converting a key falling resistance trendline into support and is currently breaking out from another falling wedge above the falling trendline.

Featured image created with Dall.E, chart from Tradingview.com