Bitcoin’s price action has recently showcased its characteristic volatility, reminding investors of the unpredictable nature of digital assets. Over the past week, Bitcoin completed a retest of the downward sloping trendline, which has been a formidable barrier to its price rallies since March. As noted by analyst EGRAG CRYPTO, the next crucial step is achieving a complete body closure on the weekly timeframe. This closure could be a decisive factor in Bitcoin’s future price movements, potentially paving the way for new heights.
Technical analysis reveals that Bitcoin broke through a key resistance trendline in mid-October. This breakout saw the cryptocurrency ascending above $68,000 for the first time in three months. However, subsequent consolidation indicated that the upward movement was not yet fully established. Despite this, Bitcoin began the following week with strong momentum, particularly rallying from $66,900 on October 27 to $73,540 on October 29, marking a roughly 10% increase in just two days. This surge successfully completed the breakout of the resistance trendline.
EGRAG CRYPTO highlighted that Bitcoin has confirmed the breakout and retest phase on a larger timeframe, specifically the weekly candlestick chart. The initial breakout noted by EGRAG CRYPTO dates back to February 2024, when Bitcoin surpassed the $47,000 mark. Currently, Bitcoin is trading at $69,155, per TradingView data. When considering the weekly timeframe, the journey to the all-time high of $73,737 on March 14, the subsequent correction to a low of $49,800 on August 5, and the recent rise above $73,000 are all elements of a substantial breakout and retest process that has unfolded over the past 38 weeks.
This sequence of price movements underscores Bitcoin’s resilience and the bullish sentiment prevalent among traders. EGRAG CRYPTO suggests that this pattern is highly bullish and predicts that Bitcoin may continue its upward trajectory. The analyst has proposed a potential price target in the range of $90,000 to $110,000 by December 2024, indicating possible returns of 32% to 62% from the $68,000 breakout. Nonetheless, EGRAG also emphasized that for this bullish run to be confirmed, Bitcoin needs to close the week in positive territory.
At the time of writing, Bitcoin is trading at $68,500, experiencing a minor 1.9% pullback in the past 24 hours. Despite this slight decline, the overall bullish sentiment surrounding Bitcoin remains undeterred.
