Bitcoin’s price is showing signs of forming a bullish wedge pattern, remaining close to its 2021 all-time highs. Traders are eyeing a potential price target of $85,000.
“Bitcoin has formed a massive descending broadening wedge, right around the previous cycle highs,” noted pseudonymous crypto trader Jelle in a July 26 post on X.
This pattern, characterized by a series of lower highs and lower lows that broaden over time, typically signals a potential upward trend reversal.
“Price looks eager for a breakout — and once it does, I expect the move to be sharp. First target, $85,000,” Jelle added.
This target is approximately 15% above Bitcoin’s current all-time high of $73,679, achieved in March.
As of now, Bitcoin is trading at $67,908, reflecting a 2.61% increase since July 26, according to data from CoinMarketCap.
A move to $85,000 would represent a roughly 25% increase, reminiscent of the price spike on July 21 when Bitcoin rebounded from $55,854 to $68,181.
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The next critical milestone for Bitcoin is $69,000, its all-time high from November 2021. Reaching this level would liquidate approximately $929.65 million in short positions, as per CoinGlass data.
“We are still in a larger range, and it is best to assume we can find resistance the closer we get to the $72,000 level,” stated pseudonymous crypto trader Emperor.
The recent market speculation follows reports that Bitcoin has recovered most of its losses since July 25, with traders closely monitoring former U.S. President Donald Trump’s anticipated appearance at the Bitcoin 2024 conference in Nashville, Tennessee.
“Nobody wants to short Bitcoin into the weekend,” wrote Markus Thielen, CEO of 10x Research, in a July 25 analyst note.
Thielen highlighted that there is speculation Trump might announce plans for a strategic Bitcoin reserve at the conference if elected president in November.
“Because if Trump announced a strategic reserve, Bitcoin would gap higher,” Thielen explained, indicating why many traders are hesitant to take short positions.
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