Bitcoin (BTC) faces an uphill battle to keep its price above the $66,000 support level, but an analyst has identified a new path to an all-time high.
In particular, in X’s post from July 31, an analyst under the pseudonym Magazines emphasized that Bitcoin is currently trading within a descending expanding wedge, a technical formation that often indicates a significant price move is coming.
Bitcoin price is consolidating around the upper resistance line of this wedge pattern, indicating a critical moment. The expert highlighted this consolidation phase as a possible breakout leading to significant growth.
Notably, the Bitcoin chart depicts a descending expanding wedge, with price action bouncing between converging trendlines since the start of this year. This pattern typically suggests that while the asset’s price has experienced wider swings over time, it is preparing for a decisive breakout.
In this scenario, a breakout to the upside is expected given the current consolidation near the upper boundary.
Bitcoin’s Next Record
Magazines set a technical target for this breakout at $95,700. This target is derived from the height of the wedge at its widest point, projected from the breakout level. Such a move would represent a significant increase in Bitcoin from current levels, adding to bullish sentiment among investors.
“The price is consolidating around the upper resistance line, a breakout could lead to a large-scale increase. The technical target for this model is $95,700,” the expert noted.
The analysis is consistent with the broader positive sentiment in the cryptocurrency market. Many analysts are predicting a bullish trend for Bitcoin in the second half of 2024. In the short term, Bitcoin is struggling with bearish sentiment, which can be explained by several factors.
For example, investors were somewhat confused after Grayscale’s Bitcoin Trust (GBTC), a spot Bitcoin exchange-traded fund (ETF), lost about 10% of its value on Tuesday. The decline was largely expected, as 10% of the Bitcoin held by the fund was set aside to create the Grayscale Bitcoin Mini Trust.
Bitcoin Price Analysis
At press time, Bitcoin was trading at $66,270, down nearly 1% on a daily basis. Indeed, the price move came after Bitcoin failed to break above $70,000 on July 29. Overall, the losses have widened on the weekly chart, with the asset down 0.3%.
At the same time, if Bitcoin fails to hold the $66,000 support zone, the next target to watch will be $65,000. If this support is broken, Bitcoin will likely suffer further losses.
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