Bitcoin (BTC) seems poised for a major breakout, if prominent analysts are to be believed. The world’s most popular cryptocurrency has been stuck in a consolidation phase for a record-breaking 87 days, but experts say this slumbering giant might be about to awaken with a vengeance.
Charting A Course For Breakout
Faibik, a well-known crypto analyst, has identified a technical pattern on the Bitcoin daily chart that hints at a potential explosion. This pattern, known as a Descending Broadening Wedge, suggests a price squeeze that often precedes a significant breakout. Faibik believes that a surge past the crucial $71,000 resistance level would be a strong bullish signal, indicating a potential reversal of the recent downtrend.
$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
The DBW on the BTC chart is a sign that the price is getting tighter and tighter, explained Faibik in a recent post. This typically leads to a breakout in one direction or another, and based on the current market sentiment, a bullish breakout seems more likely.
A Quick Bitcoin Price Overview
Using trend lines to connect the three lower highs and three higher lows, the price of bitcoin broke out of the symmetrical triangle pattern on June 4. Nevertheless, the weekly resistance at the $71,280 level refused the breakout.
At the $68,500 mark, which is the upper edge of the symmetrical triangle pattern, BTC is now finding support. Bitcoin might rise 7% to reach its all-time high of $73,777 if current support holds.
Will Bitcoin Emerge A Bullish Butterfly?Mags, another popular crypto analyst, takes a slightly different approach. He views the current consolidation phase as the longest Bitcoin has ever experienced, surpassing previous periods before significant price increases.
The analyst compares this extended consolidation to a butterfly in its chrysalis, suggesting a potential transformation on the horizon.
Historically, Bitcoin has exhibited a pattern of consolidation around all-time highs, followed by a price discovery phase that precedes sharp price movements, the analyst said. The current 87-day consolidation period shatters previous records, potentially indicating a massive price move could be in the offing.
Mags highlights prior instances where similar consolidation periods preceded major bull runs. In 2017, for example, Bitcoin consolidated for 48 days before a breakout, while in 2020, the consolidation phase lasted 21 days before a significant price increase.
The $71.3k Resistance LevelBoth Faibik and Mags agree that a breakout from the current consolidation phase could be a game-changer for Bitcoin. They advise investors to keep a close eye on the $71,300 resistance level, as a surge past this point could signal the start of a bullish trend.
Featured image from Buy Sites, chart from TradingView