Bitcoin’s recent price movements amid the US presidential election of 2024 have positioned its value around $69,092, following a slight dip below the $70,000 mark last week. This period has been characterized by relatively low volatility, enabling Bitcoin to stabilize within the $68,000 to $69,000 range in recent days.
The steady trend has encouraged analysts to predict an upward trajectory, supported by various technical patterns and indicators that suggest a potential rally. Among these analysts, a notable voice, Captain Faibik, has shared insights on social media platform X about a technical formation known as a “Descending Broadening Wedge.”
Captain Faibik emphasized that Bitcoin has completed a breakout from this pattern on a weekly chart and is currently in a “retest” phase. In technical analysis, a Descending Broadening Wedge is typically seen as a bullish reversal pattern, formed when price action shows lower highs and lower lows within diverging trendlines, hinting at a weakening downward momentum. If the price decisively breaks through the resistance, it often indicates a forthcoming surge. Faibik anticipates a successful retest of Bitcoin’s recent breakout and has set a midterm target of $88,000, forecasting a potential 30% increase in the cryptocurrency’s value by year-end.
In addition to Faibik’s observations, another respected analyst, Javon Marks, has identified signs of bullish divergence on Bitcoin’s chart. Bullish divergence occurs when an asset’s price hits lower lows, while a technical indicator, such as the Relative Strength Index (RSI), records higher lows. This scenario can suggest a potential reversal as buying momentum starts to build. Marks interprets this divergence as an indication that Bitcoin’s bulls could be gearing up for a significant move, which might lead to Bitcoin regaining market dominance. Marks supports the notion of an upward trend in the medium term, despite short-term market uncertainties.
Meanwhile, blockchain analytics firm IntoTheBlock has reported notable trends in Bitcoin holders’ behavior. Their data indicates that while long-term Bitcoin holders are currently selling, the extent of these sell-offs appears moderate compared to previous bull cycles. Historically, long-term holders have sold more aggressively, signaling peak market sentiment. However, the current sell-off trend among long-term holders has been more restrained, possibly reflecting a cautious approach amid Bitcoin’s present market conditions. IntoTheBlock suggests that this restrained selling behavior could point to a shift in the cycle dynamics, potentially heralding a new market phase for Bitcoin.
