Bitcoin traders and analysts stand by their belief that the the price of the cryptocurrency will reach at least $ 70,000 over the next few sessions.
At the heart of their bullish outlook is a classic technical indicator. Nicknamed Asce TriangleHowever, the pattern is formed when an asset forms two or more rising troughs and almost equal peaks in conjugation. The trend lines connecting these points converge as the price increases, making it appear as an ascending triangle.
Bullish structure of Bitcoin? Check it out.
Bitcoin ticks almost all of the boxes when it comes to confirming that it forms an ascending triangle. The two-month-old cryptocurrency structure invited it to test levels around $ 60,000 repeatedly as resistance. Meanwhile, the price continued to rise while treating an uptrend line as support. The only link missing is an upside breakout.
"When it goes over $ 60,000 with conviction, don't be shy," said oneanalyst proclaimed the Twitter.
Structure of the Bitcoin bullish triangle, as shared by CryptoHornHairs. Source: BTCUSD on TradingView.com
The bullish triangle breakouts tend to move the target higher of the asset at a level higher than the widest distance between the upper and lower trendline. Applying these theoretical definitions to Bitcoin charts ensures that itwould exceed $ 75,000 in future sessions. $ 70,000 remains a psychological resistance target.
Bitcoin Analyst Josh Olszewicz confirmed that an escape move would push the price of bitcoin towards 75 $ 000. cryptocurrency would start to consolidate in the $ 70,000- $ 75,000 area. Meanwhile, another analyst - albeit a pseudonym - is providing fundamental catalysts that could spark the explosive bullish move.
Coinbase IPO FOMO
Pentoshi, a widely followed Twitter account, noted that the forthcoming direct listing of Coinbase, a US-based cryptocurrency exchange, on theNasdaq, would serve as a tailwind for technically bullish structures. In his view, Bitcoin is consolidating inside a symmetrical triangle - another technical indicator professing an asset's bullish continuation bias.
Bitcoin symmetrical triangular structure. Source: BTCUSD on TradingView.com
"CB IPO is now 6 days BTC offer is at an all time high. Yet no announcements of new holdings, "wrote the independent analyst.
But technical indicators are not always accurate. A study by Samurai Trading Academy shows that ascending triangles have seen a 72.77 percent success rate. Meanwhile, the possibility of bitcoin breaking above of its symmetrical triangular structure remains even lower at 54.87% (given that it also appears as a fanbullish ion).
Photo by Mark Boss on Unsplash