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If eminent analysts are to be taken at face value, Bitcoin (BTC) appears ready for a big breakthrough. Although analysts believe this slumbering monster may be poised to awaken with a vengeance, the most often used cryptocurrency in the world has been caught in a consolidation period for an amazing 87 days.
Charting A Course For Breakout
Renowned crypto researcher Faibik has identified an explosive possible technical pattern on the daily Bitcoin chart. This trend, commonly referred to as a declining broadening wedge, points to a price squeeze occasionally before a noteworthy breakthrough. Faibik says a surge above the critical $71,000 resistance level would be a strong positive indicator implying a likely reversal of the present downswing.
$BTC Descending Broadening Wedge formation still in Play on the Daily timeframe Chart..📈
Once Bitcoin bulls clinch the 71.3k Crucial Resistance, the Party will start. 🔥🚀
Trust the Process..✍️#Crypto #Bitcoin #BTC pic.twitter.com/gBas14jIDo
— Captain Faibik (@CryptoFaibik) June 9, 2024
Explained Faibik in a previous post, the DBW on the BTC chart indicates that the price is becoming more tighter. Usually this results in a breakout in one direction or another, depending on the attitude of the current market. A bullish breakout looks more plausible.
A Quick Bitcoin Price Overview
On June 4, bitcoin broke out from the symmetric triangle pattern by means of trend lines connecting the three lower highs and three higher lows. Still, the weekly resistance at the $71,280 mark turned back the breakthrough.
BTC is now attracting support at the $68,500 mark, the top edge of the symmetrical triangle formation. If present support persists, Bitcoin can climb 7% to reach its all-time high of $73,777.
Will Bitcoin Emerge A Bullish Butterfly?
Another well-known crypto analyst Mags approaches things slightly differently. He sees the present phase of stabilisation as the longest Bitcoin has ever gone through, surpassing earlier times before notable price rise.
The expert suggests a possible change on horizon by likening this prolonged consolidation to a butterfly in its chrysalis.
Historically, the analyst added, Bitcoin has shown a pattern of consolidation near all-time highs followed by a phase of price discovery before dramatic price swings. The current 87-day consolidation period breaks past records, suggesting a possible significant price movement off-course.
Mags notes earlier events where comparable consolidation times preceded significant bull runs. For instance, Bitcoin consolidated for 48 days before a breakthrough in 2017; in 2020, the phase of consolidation lasted just 21 days before a notable price rise.
The $71.3k Resistance Level
Faibik and Mags believe that a break from the present period of consolidation might impact Bitcoin fundamentally. They counsel investors to monitor the $71,300 barrier level closely since a jump past this point would indicate the beginning of a positive trend.
Featured image from Buy Sites, chart from TradingView
