This article is available in Spanish.
Recent market inflows and dynamics have seen the Bitcoin price break away from a seven-month bearish, widening wedge pattern. According to crypto analyst Gert van Lagen, Bitcoin’s breakout last week could mark the start of a major phase of price continuity. Bulls are aiming above the $70,000 mark. In particular, Van Lagen emphasized that Bitcoin’s ability to successfully retest the upper trendline of this pattern provides strong impetus to the current bullish structure.
The falling, widening wedge pattern is a reversal structure in technical analysis, often indicating a strong trend breakout. Bitcoin’s ability to break the upper trendline strengthens the chances of bullish momentum and gives 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 analysisBitcoin price once again tested a descending trendline, which has limited its price gains since hitting an all-time high of $73,737 in March. By then, Bitcoin had already peaked from this trendline in the descending widening wedge and was already on the third candle.
Related reading
As Bitcoin bounced off the upper trendline, Van Lagen described this as a “successful bullish retest.” Moreover, he pointed out the importance of a bullish trajectory for this pattern, highlighting that the breakout direction is upward 79% of the time.
With Bitcoin price successfully above this wedge, this next phase could see the cryptocurrency extend its gains and rise above $70,000. As such, the analyst also noted that reaching a new all-time high is key to fully validating the wave continuation pattern.
Key Bitcoin Price Levels to Watch
While the outbreak and retesting provide promising technical signs, van Lagen warned of a critical downside that traders should keep an eye on. He identified $58,700 as a crucial weekly close, below which the bullish structure would be reversed. According to him, a close below this threshold would disrupt the continuation of the fast wave five and completely reverse the bullish setup to a new all-time high.
Related reading
Interestingly, Bitcoin has managed to rally since this outbreak. The cryptocurrency in particular has extended its gains, now rising 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 now, Bitcoin is only 3.6% away from reaching uncharted price territories. The only the main price resistance level to Look 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. Bitcoin’s open interest is now at a high of $42.6 billion, which amounts to a high trading activity among Bitcoin traders.
Featured image created with Dall.E, chart from Tradingview.com
