Bitcoin (BTC) appears poised for a major breakout, if leading analysts are to be believed. The world's most popular cryptocurrency has been stuck in a consolidation phase for a record 87 days, but experts say this sleeping giant may be about to wake up with a vengeance.
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Draw a path to penetration
Vibek, a well-known cryptocurrency analyst, has identified a technical pattern on Bitcoin's daily chart that indicates a potential explosion. This pattern, known as a descending expanding wedge, indicates price pressure that often precedes a major breakout. Vibec believes that a break above the crucial resistance level of $71,000 would be a strong bullish signal, indicating a potential reversal of the recent downtrend.
$ Bitcoin The falling broadening wedge formation is still in play on the daily chart..📈
Once Bitcoin bulls grab the crucial resistance level at 71.3K, the party will begin. 🔥🚀
Trust the process..✍️#encryption #Bitcoin #Bitcoin pic.twitter.com/gBas14jIDo
– Captain Faibik (@CryptoFaibik) June 9, 2024
Vibeck explained in a recent post that the DBW on the BTC chart is a sign that the price is getting tighter. This usually leads to a breakout in one direction or another, and based on current market sentiment, an upward breakout seems more likely.
A quick overview of Bitcoin prices
Using trend lines to connect the three lower highs and three higher lows, Bitcoin price broke out of the symmetrical triangle pattern on June 4. However, the weekly resistance at $71,280 refused to break out.
At the $68,500 mark, which is the upper edge of the symmetrical triangle pattern, BTC is now finding support. Bitcoin may rise 7% To reach an all-time high of $73,777 if current support holds.
Will Bitcoin show a bullish butterfly?
Mags, another popular cryptocurrency analyst, takes a slightly different approach. He sees the current consolidation phase as the longest period Bitcoin has ever seen, surpassing previous periods before significant price increases.
The analyst compares this extended consolidation to a butterfly in its cocoon, indicating a potential shift on the horizon.
Historically, Bitcoin has shown a pattern of consolidation around all-time highs, followed by a price discovery phase that precedes sharp price movements, the analyst said. The current 87-day consolidation period breaks previous records, which could indicate the potential for a massive price movement in the near future.
Mags highlights past cases where similar periods of consolidation preceded major upswings. In 2017, for example, Bitcoin consolidated for 48 days before the breakout, while in 2020, the consolidation phase lasted 21 days before a significant price increase.
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Resistance level is $71.3 thousand
Both Faibik and Mags agree that a breakout from the current consolidation phase could be a game-changer for Bitcoin. They advise investors to closely monitor the $71,300 resistance level, as a rise beyond this point could indicate the beginning of an uptrend.
Featured image of buy sites, chart from TradingView
