Bitcoin (BTC) is facing an uphill battle to maintain its price above the $66,000 support area, but an analyst has identified a new path to an all-time high.
Particularly, in an X post on July 31, the analyst with the pseudonym Mags highlighted that Bitcoin is currently trading within a descending broadening wedge pattern, a technical formation often indicative of a significant upcoming price movement.
Bitcoin’s price has been consolidating near the upper resistance line of this wedge pattern, suggesting a critical juncture. The expert highlighted this consolidation phase as a possible breakout leading to a substantial upside rally.
Notably, Bitcoin’s chart depicts a descending broadening wedge, with the price action bouncing between converging trendlines since earlier this year. The pattern typically suggests that while the asset’s price is experiencing wider swings over time, it is gearing up for a decisive breakout.
Bitcoin price analysis chart. Source: Mags
In this scenario, the breakout is anticipated upward, given the current consolidation near the upper boundary.
Bitcoin’s next record high
Mags has set the technical target for this breakout at $95,700. This target is derived from the wedge’s height at its widest point, projected from the breakout level. Such a move would represent a significant rally from Bitcoin’s current levels, reinforcing the bullish sentiment among investors.
“The price is consolidating near the upper resistance line, a breakout could lead to a massive upside rally. The technical target for this pattern is $95,700,” the expert noted.
The analysis aligns with a broader positive sentiment in the cryptocurrency market. Many analysts foresee a bullish trend for Bitcoin in the latter half of 2024. In the short term, Bitcoin is battling bearish sentiments that can be attributed to several factors.
For instance, investors have been partly rattled following Grayscale’s Bitcoin Trust (GBTC) spot Bitcoin exchange-traded fund (ETF) ‘s loss of about 10% of its value Tuesday. The decline was largely expected, as 10% of the Bitcoin held by the fund was spun off to create the Grayscale Bitcoin Mini Trust.
Bitcoin price analysis
By press time, Bitcoin was trading at $66,270 with daily losses of almost 1%. Indeed, the price movement comes after Bitcoin failed to breach the $70,000 mark on July 29. Overall, the losses have extended on the weekly chart, with the asset down 0.3%.
Bitcoin seven-day price chart. Source: Finbold
In the meantime, if Bitcoin fails to hold the $66,000 support zone, the next target to watch will be $65,000. If this support is breached, Bitcoin is likely to see further losses.
