Bitcoin Surge To $70,000 Looms as Price Breaches Long Consolidation

Bitcoin (BTC) started the week rather quietly, trading within a narrow range of around $64,000 early Monday. This stability followed a strong weekly close on Sunday, following a strong recovery from a low of $49,345 on August 5. During this recovery, the global crypto market cap also grew by approximately 29%, reaching $2.25 trillion. Notably, after a brief consolidation period of just over two weeks, Bitcoin surged past the closely watched resistance at $62,000 last Friday, setting the stage for a higher move.

Bitcoin’s recent price movements have been influenced by key factors, with initial concerns over potential BTC sales by the Mt. Gox trustees and the German and U.S. governments now largely subsiding. However, the upcoming U.S. presidential elections, often called the “Bitcoin election” within the crypto community, have introduced a new layer of uncertainty, leading investors to take a more cautious risk-off approach.

Nevertheless, despite these challenges, Bitcoin has demonstrated impressive resilience, with technical analysts increasingly optimistic about its future trajectory. Analyst “Captain Faibik,” along with others, has noted that Bitcoin is currently trading within an expanding triangle pattern. This formation indicates increasing volatility, with the upper boundary of the pattern positioned around the $70,000 mark. According to this analysis, Bitcoin is expected to approach this upper resistance level soon, potentially paving the way for a significant breakout if the current momentum persists.

“This week, Bitcoin may Retest the key $70k Resistance. Will Bitcoin Bulls be able to Break through the $70k Resistance this time?” he asked.

This bullish outlook is shared by analyst “Trader Tardigrade,” who highlighted that Bitcoin has now entered Phase D of the Wyckoff Accumulation pattern, a key stage where the cryptocurrency typically solidifies its support level before embarking on a significant upward move.

“Soon $BTC will give us Last Point of Support (LPS) and Sign of Strength (SOS). Once it leaves the accumulation stage, $BTC could reach over $100,000 in the Mark-up stage.” He wrote.

However, not all analysts are optimistic about BTC in the short term. Alan Santana cautioned that Bitcoin’s correction may not be over, suggesting that the price could drop to $40,000.

“Why would Bitcoin move lower? The market moves in cycles, and it tends to seek balance. A prolonged bullish wave, 16 months, is matched by a strong correction. It is just the way it works.” He noted.

He further predicted that Bitcoin will face its toughest period from August to September 2024, with a potential recovery beginning in October. Santana anticipates that this rebound could propel Bitcoin to a new all-time high of $190,000 by early 2025.

Bitcoin was trading at $63,481 at press time, down 1.10% over the past 24 hours.