As Bitcoin (BTC) looks to break above the $70,000 resistance level, a crypto analyst noted that chart patterns point to a potential all-time high in the near future.
In X’s post on July 20, CryptoCon offered a Bitcoin price forecast using what he calls “magic bands.” These bands identify several key levels that Bitcoin has historically maintained throughout various market cycles.
The Magic Bands chart is divided into several key levels: the lower band of cycle 4 (the 0.25 level), the 0.75 level, the 1 level, the 1.5 level, the 2 level, the 2.5 level, the 3 level, and the upper band of the cycle. Each of these levels represents a critical price zone that Bitcoin tends to interact with during its market cycles. The key support levels have been key in previous cycles, providing reliable indications of Bitcoin’s price trajectory.
According to the latest analysis, Bitcoin has experienced a significant rebound from Level 2 of the Magic Bands, mirroring the behavior seen in previous retests of the major bands. In this light, CryptoCon stressed the importance of the jump, noting that it could lead to another all-time high above $90,000.
“A perfect bounce from Level 2 of the #Bitcoin Magic Bands, just like all the major band retests that came before. Only one thing left… a move to Level 3 at $92,908. The Magic Bands continue their streak of fantastic accuracy,” CryptoCon stated.
Current analysis shows that Bitcoin has bounced from “Level 2,” around $55,431, and is now preparing to move towards “Level 3,” projected above $90,000. This move is seen as a continuation of the pattern seen in previous cycles where Bitcoin moves to the next higher band after finding support in a lower band.
Historical accuracy of Magic Bands confirms CryptoCon’s confidence in this forecast.
Next cycle high target
Looking ahead, the cycle’s upper target is set at $125,916 and is expected to rise. This suggests that Bitcoin could potentially reach new all-time highs in this market cycle if it continues to follow the historical patterns outlined by the Magic Bands.
Indeed, as things stand now, investors are counting on Bitcoin to reclaim the $70,000 resistance level, which would open the door to an all-time high once again. Some analysts are now forecasting a bullish outcome in the short term.
For example, in another post, a cryptanalyst Lizards Stockmoney notes that Bitcoin is poised to form a Three Inside Up pattern on its weekly chart, a strong bullish reversal signal. This pattern involves a large bearish candlestick, followed by a smaller bullish candlestick within the range of the first candlestick, and the final candlestick closing above 50% of the first.
In accordance with Stockman’s Lizards, Bitcoin is close to this critical 50% level. If confirmed, this pattern could signal the start of a new uptrend, adding to the bullish sentiment and potentially driving Bitcoin higher in the coming weeks.
Bitcoin Price Analysis
At press time, Bitcoin was trading at $66,940, up about 0.5% in the last 24 hours. On a weekly chart, Bitcoin is up more than 12%.
If the current momentum continues, Bitcoin will likely return to the $67,000 mark, which will be a key factor on the way to reaching the $70,000 mark.
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