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The Bitcoin price action was characterized by ups and downs in the week just ended, serving as a reminder of the volatile nature of the digital asset. According to price data, Bitcoin has just done that completed a retest of the downward trend line that has that limited its price increases since March.
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As analyst EGRAG CRYPTO noted, all that remains is a complete shutdown of the body within a weekly time frame. This close will be crucial in determining the next phase of Bitcoin’s price action, potentially paving the way for a rally into new price areas.
Bitcoin completes the trendline retest
Technical analysis of the Bitcoin price points to a breakout from the resistance trendline in mid-October. While this breakout pushed the crypto above $68,000 for the first time in three months, a consolidation shortly afterwards suggested the work was not done.
However, Bitcoin started the week just ended well. Especially in the last three days of October, BTC rose from $66,900 on October 27 to $73,540 on October 29. This represented an increase of approximately 10% in just two days. Interestingly enough, this was enough to complete a successful breakout of this resistance trendline.
According to EGRAG CRYPTO, Bitcoin has successfully broken out and has confirmed a retest phase. However, the outbreak noted by the analyst is in a larger time frame on the weekly candlestick chart. Looking at the Bitcoin price chart below, the first breakout noted by EGRAG CRYPTO dates back to February 2024, when the top coin broke above $47,000.
What this means is that looking at the weekly time frame, Bitcoin’s journey to the all-time peak/high of $73,737 on March 14, the correction to a low of $49,800 on August 5, and the recent return above $73,000 are all part from one major outbreak and retesting movement that has occurred over the past 38 weeks.
What’s next for Bitcoin?
This sequence of price movements paints a picture of Bitcoin’s resilience and the prevailing bullish sentiment among traders. According to EGRAG, the pattern is super bullish and he expects the cryptocurrency to continue this trend. In terms of a price target, the analyst suggested a potential upside to the $90,000 to $110,000 range by December 2024. This represents a 32% and 62% return respectively from the $68,000 breakout. Interestingly, EGRAG also noted that the only thing left to certify this run is for the price to end the week in a green zone.
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At the time of writing, Bitcoin is trading at $68,500, down about 1.9% in the past 24 hours. This little setback, However, it doesn’t seem to stop it general bullish sentiment around Bitcoin at this moment.
Featured image from CNBC, chart from TradingView