Bitcoin price has shown good signs of recovery over the past seven days, returning to above $58,000 at the end of the week. Interestingly, a prominent cryptocurrency analyst on X has identified a chart formation that suggests a possible continuation of this recovery by the leading cryptocurrency.
Bitcoin Price Prints This Chart Pattern – What’s Next?
In a new post on the X platform, popular cryptocurrency analyst Ali Martinez said: subscriber Exciting analysis of Bitcoin price over the next few days. According to a cryptocurrency expert, the leading cryptocurrency appears to have reached a critical point for an upward breakout that could see its price reclaim its previous highs.
The rationale behind Martinez’s predictions is the formation of an ascending triangle pattern on the four-hour Bitcoin price chart. An ascending triangle refers to a technical analysis pattern that features a horizontal line drawn along swing highs and an upward trend line drawn along swing lows.
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Ascending triangles are often referred to as continuation patterns, as the price often breaks the triangle in the direction of the prevailing trend (uptrend or downtrend) in the triangle formation. However, this is not always the case with the chart pattern.
Martinez emphasized that if Bitcoin price succeeds in breaking the horizontal triangle line, which is located around the $59,200 resistance level, it may continue its recovery journey. According to the analyst, the leading cryptocurrency may rise to the $63,800 level.
At the time of writing, Bitcoin is trading at $59,431, breaking above the $59,200 level after the failed assassination attempt on former US President and vocal Bitcoin supporter Donald Trump. A sustained break above this level would make the $63,800 price prediction more likely than ever.
BTC Sentiment Likely to Drop to Lowest Level Since 2020
In another post on X, Martinez open Bitcoin sentiment has taken a sharp downturn following the coin’s recent drop to $53,300. According to data from Santiment, the weighted sentiment dropped to -2 on July 5, its lowest level since the COVID-19 crash in March 2020.
Negative sentiment is never a good sign for Bitcoin price, as it could be a sign of further decline for the currency. Although Bitcoin sentiment hit a multi-year low just over a week ago, it is currently moving towards the positive side.
On July 5, as #Bitcoin The stock dropped to $53,300, and the weighted sentiment dropped to -2 – the lowest level since the Covid-19 crash in March 2020! pic.twitter.com/6B4sLzsXP0
— Ali (@ali_charts) July 13, 2024
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However, the metric is still negative at around -0.47 based on Martinez’s post on Saturday, July 13. This could mean further declines in the price of the leading cryptocurrency.
Featured image by iStock, chart by TradingView