The Bitcoin price has recently shown signs of recovery, surging above $58,000 in the past week. A well-known crypto analyst has pointed out a chart formation that suggests a potential continuation of this upward trend for the premier cryptocurrency. In a new post on a popular crypto platform, analyst Ali Martinez shared an intriguing analysis of the Bitcoin price movement in the coming days. Martinez believes that Bitcoin is currently at a crucial juncture for a bullish breakout that could propel its price to previous highs. The basis for this projection is the formation of an ascending triangle pattern on the Bitcoin four-hour price chart.
An ascending triangle pattern is a technical analysis formation characterized by a horizontal line connecting swing highs and a rising trendline connecting swing lows. Typically seen as continuation patterns, ascending triangles often lead to breakouts in the direction of the prevailing trend (either up or down). However, there are instances where the price action deviates from this pattern. Martinez emphasized that a successful breakout above the horizontal line of the triangle, set at the $59,200 resistance level, could trigger a further upward movement for Bitcoin. The analyst predicts that the premier cryptocurrency could rally as high as $63,800 in the near future.
Following a recent dip in Bitcoin’s price to $53,300, Martinez noted a significant decline in the coin’s weighted sentiment. Data from Santiment indicated that the weighted sentiment dropped to -2 on July 5, hitting its lowest level since the March 2020 COVID-19 crash. A negative sentiment could potentially signal further downside for Bitcoin. Despite the recent low sentiment levels, there is a slight uptrend in sentiment towards the positive side. However, as of Martinez’s latest update on July 13, the metric remains negative at around -0.47, suggesting a possibility of continued downward pressure on the cryptocurrency’s price.
At the time of writing, the Bitcoin price stands at $59,431, surpassing the crucial $59,200 resistance level. The recent events, including the failed assassination attempt on former US President Donald Trump, have led to increased volatility in the cryptocurrency market. A sustained breakout above the $59,200 level could pave the way for Bitcoin to reach the $63,800 mark, as projected by Martinez. Traders and investors are advised to monitor these key price levels closely to gauge the future trajectory of the Bitcoin price.
The recent price action of Bitcoin has shown signs of recovery, with the potential for further upside movement. The identification of the ascending triangle pattern by analyst Ali Martinez suggests a bullish breakout in the near term, with a projected price target of $63,800. However, the market sentiment remains a key factor to watch, as a negative sentiment could lead to downside pressure on the cryptocurrency’s price. Traders should exercise caution and stay informed about the latest developments in the market to make well-informed trading decisions.