Bitcoin’s price is showing signs of a bullish breakout, with traders eyeing a potential surge to $85,000. The formation of a descending broadening wedge pattern suggests a significant upward trend might be on the horizon.
A Bullish Pattern Emerges
Bitcoin’s price has recently been hovering near its 2021 all-time highs, sparking optimism among traders. Pseudonymous trader Jelle highlighted on July 26 that Bitcoin has formed a descending broadening wedge pattern, a classic signal for a potential reversal. This pattern, characterized by a series of lower highs and lower lows, indicates that the cryptocurrency might soon break out upwards. Jelle predicts a sharp move, with the first target set at $85,000, about 15% above Bitcoin’s current all-time high of $73,679.
Current Market Dynamics
As of now, Bitcoin is trading at $67,908, reflecting a 2.61% increase since July 26, according to CoinMarketCap. A climb to $85,000 would mark a 25% increase, echoing the price spike seen on July 21 when Bitcoin rebounded from $55,854 to $68,181. The next significant milestone for Bitcoin traders is reaching $69,000, a level that would invalidate $929.65 million in short positions, as reported by CoinGlass.
Market Sentiments and Speculations
Traders are cautious but optimistic. Pseudonymous trader Emperor noted that Bitcoin might face resistance as it approaches the $72,000 level. Meanwhile, Markus Thielen, CEO of 10x Research, pointed out in a July 25 analyst note that traders are hesitant to short Bitcoin due to potential announcements at the upcoming Bitcoin 2024 conference. There is speculation that former U.S. President Donald Trump might unveil plans for a strategic Bitcoin reserve, which could propel Bitcoin’s price even higher.