Bitcoin (BTC) price has seen a significant surge in recent days, with analysts predicting that the cryptocurrency will soon reach new record highs. A recently observed pattern on the BTC chart gives hope to traders who are anticipating another major rally in the near future.
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Rising Wedge Pattern Indicates BTC Upside
One of the most eye-catching patterns in the crypto world is the formation of a “descending wedge” pattern on the Bitcoin chart. This pattern, where the price forms a series of lower highs and lower lows with an ever-widening gap, is often seen as an indication of a reversal in the uptrend.
Popular crypto trader Jelly noted in a post on X that Bitcoin has formed such a significant pattern near the previous cycle highs. He expects the price to surge sharply after the breakout, with an initial target of $85,000. This would represent a significant increase of around 25% from current price levels.
#Bitcoin It formed a massive broad descending wedge, around the previous session’s highs!
The price looks eager to break out – and once it does, I expect the move to be sharp.
First goal: $85,000. pic.twitter.com/26rTfGjbFp
– Jelly (@CryptoJelleNL) July 26, 2024
The next critical resistance levels for Bitcoin are around $69,000, the previous high reached in November 2021. Reaching that level would remove nearly $1 billion in short positions, according to Data from CoinGlassThis could then provide an additional upward push. However, for this to happen, the price must of course break through the resistance level.
External factors affect the price of BTC
Bitcoin speculation is fueled by recent events such as presidential candidate Donald Trump’s big plans. He recently announced that he plans to, among other things, make the United States the “cryptocurrency capital” of the world. Furthermore, Trump says he wants to add Bitcoin as a “strategic reserve” to the national treasury.
This is great news, but it seems investors are still watching the cat out of the tree. Interestingly, the price did not rise immediately after this announcement.
Although the market is always volatile, the recent bullish signals on the chart and speculation surrounding political developments show that there is a strong possibility of further upside in the price of Bitcoin. If Bitcoin does indeed reach $85,000, it will not only be a new high but also an important milestone for investors who are confident in the growth of the cryptocurrency market.
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