bitcoin (btc) appears poised for a major breakout, if prominent analysts are to be believed. The world's most popular cryptocurrency has been stuck in a consolidation phase for a record 87 days, but experts say this sleeping giant could be about to wake up with a vengeance.
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Charting a course for escape
Faibik, a well-known crypto analyst, has identified a technical pattern on bitcoin's daily chart that hints at a possible breakout. This pattern, known as a Descending Widening Wedge, suggests a price contraction that often precedes a significant breakout. Faibik believes that a rise beyond the crucial resistance level of $71,000 would be a strong bullish signal, indicating a possible reversal of the recent downtrend.
<blockquote class="twitter-tweet”>
twitter.com/search?q=%24BTC&src=ctag&ref_src=twsrc%5Etfw” rel=”nofollow”>$btc The descending widening wedge formation is still in play on the daily time chart…
Once bitcoin bulls reach the Crucial Resistance of 71.3k, the party will begin.
Trust the process…twitter.com/hashtag/crypto?src=hash&ref_src=twsrc%5Etfw” rel=”nofollow”>#crypto twitter.com/hashtag/bitcoin?src=hash&ref_src=twsrc%5Etfw” rel=”nofollow”>#bitcoin twitter.com/hashtag/btc?src=hash&ref_src=twsrc%5Etfw” rel=”nofollow”>#btc pic.twitter.com/gBas14jIDo
– Captain Faibik (@CryptoFaibik) twitter.com/CryptoFaibik/status/1799692448991678887?ref_src=twsrc%5Etfw” rel=”nofollow”>June 9, 2024
The DBW on the btc chart is a sign that the price is getting tighter, Faibik explained in a recent post. This usually leads to a breakout in one direction or the other and based on current market sentiment, a bullish breakout seems more likely.
A quick overview of bitcoin price
Using trend lines to connect the three lower highs and the three upper lows, bitcoin price broke out of the symmetrical triangle pattern on June 4. However, the weekly resistance at the $71,280 level rejected the breakout.
At the $68,500 mark, which is the upper edge of the symmetrical triangle pattern, btc is now finding support. bitcoin bitcoin–ethereum-ripple-btc-likely-to-take-markets-on-a-rollercoaster-202406100424″ target=”_blank” rel=”nofollow”>could increase 7% reach its all-time high of $73,777 if the current support holds.
Will bitcoin emerge as a bullish butterfly?
Mags, another popular crypto analyst, takes a slightly different approach. He considers the current consolidation phase to be the longest bitcoin has ever experienced, surpassing previous periods before significant price increases.
The analyst compares this extended consolidation to a butterfly in its chrysalis, suggesting a possible transformation on the horizon.
Historically, bitcoin has shown a consolidation pattern around all-time highs, followed by a price discovery phase preceding sharp price movements, the analyst said. The current 87-day consolidation period breaks previous records, potentially indicating that a massive price move could be in the offing.
Mags highlights previous cases where similar periods of consolidation preceded major bull runs. In 2017, for example, bitcoin consolidated for 48 days before a breakout, while in 2020, the consolidation phase lasted 21 days before a significant price increase.
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The resistance level of $71.3 thousand
Both Faibik and Mags agree that an exit from the current consolidation phase could be a game-changer for bitcoin. They advise investors to closely monitor the resistance level of $71,300, as a rise beyond this point could signal the start of an uptrend.
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