Bitcoin Price Potentially Set for Significant Uptrend if Chart Formation Validates

A distinctive trading pattern suggests a substantial upward movement for Bitcoin’s price in the coming months.

Chart Analysis Indicates a Bullish Scenario

According to a trader, Bitcoin (BTC) might witness a dramatic price surge if a bullish chart pattern, specifically a descending broadening triangle, is validated.

In a recent social media post, the trader pointed out that Bitcoin is currently operating within a descending broadening triangle, based on its price action over the year so far, analyzed on a two-week chart.

This pattern forms during a downtrend, characterized by two diverging lines connecting a sequence of lower highs and lower lows. A breakout above the upper trend line of this wedge would signal a significant upward movement.

The trader noted, “This pattern mirrors the behavior of $BTC during the 2019-2020 period.”

When Bitcoin previously broke free from this formation in 2020, it surged by 580%, reaching a new all-time high of around $69,000.

“The breakout moved $BTC from roughly $10,000 to near $70,000.”

Recently, Bitcoin’s price bounced back sharply from the support line of this ongoing chart pattern near $53,500. If this formation continues as projected by the trader, it could confirm a bullish breakout by surpassing the critical resistance level at $69,000.

Another analyst, Matthew Hyland, noted that the BTC/USD pair has created a comparable setup as seen “last year heading into Q4, as well as during election cycles (2012, 2016, 2020).”

Hyland explained that Bitcoin typically “finds a bottom” before commencing a prolonged uptrend as the year progresses into the fourth quarter.

Consequently, he believes that the recent decline in Bitcoin’s price below $50,000 may represent the cycle’s bottom.

Additionally, Hyland shared insights illustrating that the candlestick from the prior week exhibited the longest and lowest lower wick, potentially indicating a bottom for the leading cryptocurrency.

Another independent trader, Roman, also highlighted this weekly closure as robust, underscoring a bullish divergence while stating that it is “just a matter of time” before the price initiates a sustained upward trend.

Nonetheless, current buyer interest in the crypto market is reportedly lower than levels seen during the FTX crisis, based on the Fear & Greed Index.

The index is now at a score of “extreme fear” at 25, a marked decline from the previous day’s “Fear” score of 39.

While some traders anticipate Bitcoin’s price may be stagnant in the short term, they do not necessarily consider this a bearish indication.

“Generally, the price remains above the previous all-time high. A slight dip below support may just be a consolidation phase before another rise,” said independent trader Mags.

Crypto trader Daan Crypto Traders also mentioned in a post that the price was rejected from the channel midpoint and reverted to a critical support level.

“The price needs to establish a higher low here; otherwise, bulls could face challenges.”

This analysis is not investment advice. Trading involves risk, and individuals are encouraged to conduct their research when making financial decisions.