The recent influx of market activity and evolving dynamics have propelled Bitcoin’s price to break free from a significant 7-month descending broadening wedge pattern. Noted crypto analyst, Gert van Lagen, suggests that Bitcoin’s recent breakout may herald the beginning of a substantial price continuation phase, with bullish investors setting their sights on the $70,000 mark and beyond. Van Lagen emphasizes that Bitcoin’s successful retest of the upper trendline in this pattern fuels the current bullish momentum.
Understanding the Descending Broadening Wedge Pattern
The descending broadening wedge is a key reversal structure in technical analysis, often indicating a robust trend post-breakout. Bitcoin’s ability to breach this upper trend line significantly increases the probability of sustained bullish momentum, potentially paving the way for a new all-time high in the near future.
Bullish Retest Validates Strong Support For Next Rally
At the time of van Lagen’s insightful analysis, Bitcoin was in the process of retesting a pivotal bottom-sloping trend line, a barrier that has historically limited its price rallies since reaching a record high of $73,737 in March. By this period, Bitcoin had already peaked out of this trend line within the descending broadening wedge and was progressing on the third candle.
As Bitcoin rebounded from the upper trend line, van Lagen characterized this as a “successful bullish retest.” He further underscored the significance of a bullish trajectory within this pattern, noting that the breakout direction is upward approximately 79% of the time. With Bitcoin now firmly positioned above this wedge, the next phase could witness the cryptocurrency extending its gains and potentially surpassing $70,000. Van Lagen asserts that achieving a new all-time high is crucial for fully validating this wave continuation pattern.
Key Bitcoin Price Levels to Monitor
Despite the promising technical indicators from the breakout and retest, van Lagen cautions traders to remain vigilant of a critical downside level. He identified $58,700 as a vital weekly closing price; a dip below this level would negate the bullish structure. Such a decline could disrupt the anticipated wave five continuation and potentially reverse the bullish setup, thwarting the path to a new all-time high.
Interestingly, since this breakout, Bitcoin has managed to push further upward. Specifically, the cryptocurrency has extended its gains and surpassed $71,000 for the first time since June. As of the latest update, Bitcoin is trading at $71,150, having reached an intraday high of $71,450 within the past 24 hours. Currently, Bitcoin is a mere 3.6% away from entering uncharted price territories. The only significant price resistance level to watch at this juncture would be the standing all-time high.
Short-Term Bitcoin Price Momentum
Multiple Bitcoin metrics suggest a continuation of bullish price momentum in the short term. The Bitcoin open interest has reached a peak of $42.6 billion, signaling a heightened level of trading activity among Bitcoin traders.
As Bitcoin enthusiasts and market participants closely monitor these developments, the cryptocurrency’s trajectory remains a topic of keen interest. With the potential for achieving unprecedented price heights, the coming weeks could be pivotal for Bitcoin’s market narrative.
