Bitcoin is on a strong rally, surpassing the psychological round number of $70,000. At press time, the world's most valuable coin was approaching $72,000, a key resistance level that marked the June 2024 high.
Bitcoin Surpasses $70,000 and Descending Triangle
As buyers continued to rally, reversing losses from the second half of last week and surging to a three-month high, one analyst also picked up on another important development. In a post on X, the technical analyst said that not only was the price stable at press time, but the breakout over the past two days meant the coin was trading in a descending wedge.
Technically, based on the analyst’s preview, the coin is in a significant breakout formation, signaling that the era of disappointing lower lows seen for much of Q3 2024 may have ended as buyers take over. Specifically, the streak of lower highs and lower lows seen since the price retreated from its all-time high is likely over.
Right now, buyers are excited. According to a CoinMarketCap poll, more than 70% of voters think the coin is bullish. This preview is important, given the importance of hype in the cryptocurrency landscape.
Typically, whenever prices move higher, traders tend to rush in to avoid missing out by opening leveraged positions on perpetual futures platforms like Binance or Bybit. Meanwhile, more conservative ones opt to buy in the spot market, realizing that while profits can be booked, the risks are also minimized.
Will there be a post-Halving price surge?
For the uptrend to continue, the analyst said, it is important to confirm the gains recorded in the past two days. In this case, a follow-up would see Bitcoin surge to break $72,000 and even $74,000 by March 2024. In that case, buyers could have more room to advance as the “post-halving” rally begins.
Looking at previous cycles, the halving event has always been considered bullish. The price increased in the following months as the network halved the reward for miners in 2016 and 2020. Bitcoin then rose to $20,000 in 2017 and $70,000 in 2021.
After the April 20 halving, traders expected the phenomenon to continue. Nearly six months later, a price recovery amid rising hashrate could trigger another wave of demand, taking Bitcoin to new heights.