Bitcoin Price Breaks Out Of 7-Month Descending Broadening Wedge Pattern For Continuation Above $70,000
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Recent market flows and dynamics Bitcoin price saw a breakout from the 7-month Expanding Descending Wedge pattern. According to cryptocurrency analyst, Geert van Lagen, last week’s Bitcoin breakout could signal the beginning of a key phase for prices to continue as the market continues. Bulls are aiming above the $70,000 mark. In particular, Van Lagen highlighted that Bitcoin’s ability to successfully retest the upper trend line of this pattern adds strong momentum to the current bullish structure.
The falling broadening wedge pattern is a reversal structure in technical analysis, and often indicates a strong trend upon breakout. Bitcoin’s ability to break through the upper trend line enhances the potential for bullish momentum, giving a vote to a new all-time high in the coming weeks.
Bullish retest confirms strong support for the next rise
In Van Lagen’s time analysisBitcoin price was retesting the bottom-sloping trend line, which has capped price gains since it reached an all-time high of $73,737 in March. By then, Bitcoin had already peaked outside this trend line in the bearish expanding wedge and was already on the third candle.
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As Bitcoin rebounded from the upper trend line, Van Lagen described it as a “successful bullish retest.” Furthermore, he pointed out the importance of the upward trajectory of this pattern, highlighting that the breakout trend is up 79% of the time.
With Bitcoin price now successfully above this wedge, this next phase could see the cryptocurrency extend its gains and rise above $70,000. As such, the analyst also noted that reaching a new all-time high is essential to fully validating the wave continuation pattern.
Key Bitcoin price levels to watch
During penetration and retesting Providing promising technical signs, Van Lagen warned of a critical bearish level that traders should monitor. He noted that the crucial weekly closing price is $58,700, below which the bullish structure will be invalidated. In his view, a close below this threshold would disrupt the continuation of the fast fifth wave and completely reverse the uptrend to a new all-time high.
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Interestingly, Bitcoin has managed to push higher since this breakout. In particular, the cryptocurrency continued its gains and has now broken above $71,000 for the first time since June.
At the time of writing, Bitcoin is trading at $71,150, having reached an intraday high of $71,450 in the last 24 hours. As it stands, Bitcoin is only 3.6% away from reaching uncharted price territory. the The only major price resistance level is to See at this point it will be the current all-time high.
Many Bitcoin metrics point to continued bullish momentum for the Bitcoin price, at least in the short term. Bitcoin’s open interest has now reached its highest point of $42.6 billion, representing a… High level of commercial activity Among Bitcoin traders.
Featured image created with Dall.E, chart from Tradingview.com
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