According to prominent analysts, Bitcoin (BTC), is on the verge of a significant breakout. Experts say that the world’s largest cryptocurrency, Bitcoin (BTC), has been in a consolidation stage for an unprecedented 87 consecutive days. However, they believe this giant is about to wake up with a bang.
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The Breakout Course: Charting the course
Faibik is a well known crypto analyst who has identified on the Bitcoin chart a pattern that suggests a possible explosion. A Descending Broadening Wedge is a pattern that indicates a possible price squeeze, which often precedes an important breakout. Faibik thinks that an uptick past $71,000 would be a bullish sign, and could indicate a reversal in the current downtrend.
$BTC The Daily Timeframe Chart still shows the Descending Broadening Wedge Formation.📈
When Bitcoin bulls reach the critical resistance of 71.3k, the Party starts. 🔥🚀
You can trust the process.✍️#Crypto #Bitcoin #BTC pic.twitter.com/gBas14jIDo
— Captain Faibik (@CryptoFaibik) June 9, 2024
Faibik explained in a post that the DBW is a signal of tightening prices. The DBW on the BTC chart is a sign that price is getting tighter and tighter, explained Faibik in a recent post.
Bitcoin: A quick overview
Bitcoin’s price broke the triangle pattern on the 4th of June by using trend lines that connected the lower highs with the higher lows. However, the resistance of the 71,280 weekly level prevented the break out.
BTC now finds support around the $68,500 threshold, which represents the upper edge in the symmetrical triangular pattern. Bitcoin might rise 7% If current support continues, the price of copper will reach a record high of $73,777.
Bitcoin: Will it Emerge as a Bullish Butterfly?
Mags, a popular cryptocurrency analyst, has a slightly differing approach. He believes that the current phase of consolidation is the longest Bitcoin ever had, exceeding previous phases before price increases.
Analysts liken this long consolidation period to the transformation of a butterfly.
Analysts said that Bitcoin historically has been characterized by consolidations around highs and a subsequent price discovery phase, before sharp price changes. The 87 day consolidation period is the longest ever, which could mean a huge price change in coming days.
Mags details previous examples where consolidation periods were similar to those that preceded bull runs. Bitcoin, for instance, consolidated in 2017 for 48 days prior to a breakout. In 2020, however, it took 21 days for the phase of consolidation to end.
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The Resistance Level of $71.3k
Faibik agrees with Mags that Bitcoin could see a major shift if the current phase of consolidation ends. The pair advises investors to watch the $71,300 barrier closely, because a break above this level could be the start of an upward trend.
Chart from TradingView, Featured Image from Buy Sites
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Source: www.newsbtc.com