Bitcoin, the pioneer cryptocurrency, experienced a significant correction at the beginning of the week, causing its price to drop back to the $40,000 level. This sudden correction led to panic selling among some investors who wanted to avoid further losses. However, as the selling pressure subsided, Bitcoin began to recover slowly but steadily. In the midst of this recovery, a prominent crypto analyst has made a bold prediction, suggesting that there could be further upside potential for Bitcoin in the near future.
According to market experts, the key level to watch for Bitcoin is $69,000, which represents its all-time high price. Despite the current price being around $40,000, it is important to note that a mere 70% increase would push Bitcoin to a new all-time high. In line with reclaiming this milestone, crypto analyst Weslad took to TradingView to share their latest analysis of Bitcoin.
Weslad highlights the presence of a cup and handle pattern, indicating a possible retest that could propel Bitcoin back towards $69,000. This pattern was confirmed when Bitcoin achieved a neckline breakout above $31,800 and continued its upward trajectory. The completion of the cup and handle pattern serves as immediate support and demand, according to the analyst. Furthermore, this pattern is yet to reach its final target, further validating the potential for an upcoming rally. Weslad’s chart suggests that the current correction is expected and estimates the final target for the cup and handle pattern to be around $69,000.
While the completion of the cup and handle pattern raises the possibility of a Bitcoin breakout, several scenarios could unfold from here. The two primary scenarios are either bullish or bearish, and Weslad outlines these possibilities in their analysis.
Scenario A entails an upward rally driven by sustained support at the handle’s target zone. In this case, there is strong resistance for the Bitcoin price between $48,000 and $50,000. If this resistance is successfully surpassed, Bitcoin could embark on a significant upward trajectory.
Alternatively, Scenario B foresees the bulls failing to overcome the expected resistance at $48,000 and $50,000. In such a scenario, the Bitcoin price may experience further correction, potentially dropping as low as the neckline at $31,000. The neckline currently serves as a critical support zone.
As with any investment, it is crucial to exercise caution and conduct thorough research before making decisions. The opinions shared in this analysis are for educational purposes only and do not represent the views of NewsBTC. Investing in cryptocurrency carries inherent risks, and individuals are advised to utilize information from various sources and make informed choices.
It’s worth noting that while the cup and handle pattern points toward a potential Bitcoin rally, market conditions can change rapidly. Factors such as regulatory developments, global economic events, and investor sentiment may influence the cryptocurrency market’s trajectory. Therefore, investors should remain vigilant and stay updated on the latest news and analysis.
Bitcoin’s recent correction has left some investors concerned, but a cup and handle pattern suggests that there may be further upside potential. The completion of this pattern indicates a possible retest that could push Bitcoin towards its all-time high of $69,000. However, investors must consider multiple scenarios, including both bullish and bearish outcomes, and conduct their own research before making informed investment decisions.
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