Bitcoin Price Breaks Out Of 7-Month Descending Broadening Wedge Pattern For Continuation Above $70,000
30 October 2024 - 11:00AM
NEWSBTC
Recent market inflows and dynamics have seen the Bitcoin price
breaking free from a 7-month descending broadening wedge pattern.
According to crypto analyst Gert van Lagen, Bitcoin’s breakout last
week could signal the onset of a major price continuation phase as
the bulls aim above the $70,000 mark. Particularly, Van Lagen
highlighted that Bitcoin’s ability to successfully retest the upper
trendline of this pattern lends strong momentum to the current
bullish structure. The descending broadening wedge pattern is a
reversal structure in technical analysis, often hinting at a strong
trend upon breakout. Bitcoin’s ability to breach the upper trend
line reinforces the likelihood of bullish momentum, lending voice
to a new all-time high in the coming weeks. Bullish Retest
Validates Strong Support For Next Rally At the time of van Lagen’s
analysis, the Bitcoin price was retesting a bottom-sloping trend
line, which has capped its price rallies since it reached an
all-time high of $73,737 in March. By then, Bitcoin had already
peaked out of this trend line in the descending broadening wedge
and was already on the third candle. Related Reading: Bitcoin
ETFs Reach $3 Billion Inflows In October, Retail Investors Lead The
Charge – Report As Bitcoin bounced from the upper trend line, van
Lagen described this as a “successful bullish retest.” Furthermore,
he noted the importance of a bullish trajectory for this pattern,
highlighting that the breakout direction is upward 79% of the
time. With the Bitcoin price now successfully above this
wedge, this next phase could see the cryptocurrency extend its
gains and surge above $70,000. As such, the analyst also noted that
reaching a new all-time high is essential to fully validating the
wave continuation pattern. Key Bitcoin Price Levels To Watch While
the breakout and retest offer promising technical signs, van Lagen
warned of a critical downside level that traders should monitor. He
pinpointed $58,700 as a crucial weekly closing price, below which
the bullish structure would be invalidated. In his view, a close
below this threshold would disrupt the quick wave five continuation
and totally reverse the bullish setup to a new all-time high.
Related Reading: Dogecoin Price To $24? Analyst Says No One Will
Believe It Until It Happens Interestingly, Bitcoin has managed to
push to the upside since this breakout. Particularly, the
cryptocurrency has extended gains and has now broken above $71,000
for the first time since June. At the time of writing, Bitcoin is
trading at $71,150, having reached an intraday high of $71,450 in
the past 24 hours. As it stands, Bitcoin is only 3.6% away from
reaching uncharted price territories. The only key price resistance
level to watch at this point would be the current all-time high.
Many Bitcoin metrics point to the continuation of bullish Bitcoin
price momentum, at least in the short term. The Bitcoin open
interest is now at its highest point of $42.6 billion, which relays
a high level of trading activity among Bitcoin traders. Featured
image created with Dall.E, chart from Tradingview.com
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