Bitcoin experienced a notable correction at the beginning of the week, causing the price to drop back to $40,000. Understandably, this correction rattled some investors, leading them to panic sell in order to minimize their losses. However, as the selling pressure eased, the cryptocurrency’s price has been gradually recovering. Despite currently sitting at $40,000, it’s crucial to recognize that a mere 70% increase from this point would propel Bitcoin to a new all-time high price of $69,000.
One crypto analyst, known as Weslad, recently shared their analysis on TradingView, suggesting that Bitcoin could be preparing for a retest that might push its price back to $69,000. According to Weslad, the appearance of a cup and handle pattern indicates the potential for further price increase. Bitcoin previously completed a neckline breakout of this pattern when it surged above $31,800 and continued its ascent. As explained by the analyst, this breakout signifies immediate support and demand for the cryptocurrency. Furthermore, since the pattern has yet to fully complete its breakout, its final target is expected to be around $69,000.
While the completion of the cup and handle pattern suggests the possibility of a Bitcoin breakout, there are still multiple scenarios that could unfold from this point. Weslad outlines two primary scenarios: Scenario A, an upward rally, and Scenario B, a potential further correction.
In Scenario A, the sustained support at the Handle’s target zone could pave the way for a bullish rally. However, resistance may arise between $48,000 and $50,000 as the Bitcoin price attempts to surpass these levels.
On the other hand, Scenario B involves the failure of the bulls to overcome the expected resistance at $48,000 and $50,000. If this occurs, Weslad suggests that Bitcoin could experience a deeper correction, potentially dropping as low as the Neckline at $31,000, which currently acts as a critical support zone.
It’s important to approach predictions and analyses with caution, as the cryptocurrency market is highly volatile and unpredictable. While Weslad’s perspective raises the possibility of Bitcoin reaching $69,000, investors should conduct their own research and make informed decisions. Investing in cryptocurrencies carries inherent risks that should not be taken lightly. It is advisable to seek professional advice and stay updated on market trends before making any investment decisions.
This article provides educational information only and does not represent the opinions of NewsBTC on investment choices. The decision to buy, sell, or hold any investments should be based on personal research and understanding of the risks involved. The use of information provided in this article is entirely at the reader’s own risk.
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