The recent price movement of Bitcoin has shown promising signs of recovery, with the price surpassing $58,000 in the past week. A well-known crypto analyst has identified a chart formation that indicates a potential continuation of this upward trend for the leading cryptocurrency. In a fresh analysis posted on a popular crypto platform, the analyst sheds light on the critical juncture at which Bitcoin currently finds itself, hinting at a bullish breakout that could potentially lead to a resurgence in its price.
The analyst points towards the formation of an ascending triangle pattern on the four-hour price chart of Bitcoin as the basis for this optimistic projection. An ascending triangle is a technical pattern characterized by a horizontal line connecting swing highs and a rising trendline connecting swing lows. Typically seen as a continuation pattern, ascending triangles often result in a breakout in the direction of the prevailing trend. However, exceptions to this pattern do exist.
If Bitcoin manages to break above the horizontal line of the triangle, currently situated at the $59,200 resistance level, the analyst suggests that the cryptocurrency could potentially rally up to $63,800. At the time of writing, Bitcoin is trading at $59,431, having surpassed the $59,200 mark following recent events, such as the failed assassination attempt on a prominent Bitcoin advocate. A sustained move above this level could pave the way for the realization of the $63,800 price target.
In another analysis, the analyst discusses Bitcoin’s weighted sentiment, which took a hit following a drop in the coin’s price to $53,300. According to data from Santiment, the weighted sentiment plunged to -2 on July 5, marking its lowest level since the COVID-19 market crash in March 2020. While a negative sentiment is typically seen as a bearish indicator for Bitcoin, there has been a gradual improvement in sentiment since the recent low point.
Despite the slight uptick in sentiment, the metric still hovers around -0.47 based on the analyst’s latest assessment. This could suggest a lingering downside risk for the price of Bitcoin in the near term. It is important to closely monitor both price action and sentiment indicators to gauge the potential trajectory of the cryptocurrency in the coming days.
The Bitcoin price is at a crucial juncture, with signals pointing towards a possible breakout to higher levels. While technical patterns and sentiment indicators provide valuable insights, the volatile nature of cryptocurrencies requires a cautious approach to trading and investing. Traders and investors should exercise discipline and risk management strategies when navigating the ever-changing landscape of the cryptocurrency market.
Leave a Reply