Bitcoin Price Stabilizes Around $69,000 with Potential for 30% Rally
Bitcoin's price is currently around $69,092, following a drop below $70,000 last week amid the US presidential election 2024. This period of low volatility has allowed Bitcoin to stabilize in the $68,000 to $69,000 range recently. Analysts forecast possible upward movement based on technical patterns and indicators suggesting a potential rally.
30% Bitcoin Rally In Play
Analyst Captain Faibik discussed a technical pattern called a “Descending Broadening Wedge” on X. He noted that Bitcoin has broken out from this pattern on a weekly chart and is now in a “retest” phase. The Descending Broadening Wedge is viewed as a bullish reversal pattern, characterized by lower highs and lower lows within diverging trendlines, indicating weakening downward momentum.
If Bitcoin breaks upward through resistance, a price surge may follow. Faibik anticipates a successful retest and sets a midterm target of $88,000, predicting a potential 30% increase by year-end.
Bullish Divergence And Long-Term Holder Behaviour
Analyst Javon Marks highlighted signs of bullish divergence on Bitcoin’s chart, where the asset's price makes lower lows while the Relative Strength Index (RSI) shows higher lows. This divergence suggests a potential reversal as buying momentum builds. Marks believes this indicates that Bitcoin's bulls may be preparing for a move, supporting an upward trend in the medium term despite current uncertainties.
Blockchain analytics firm IntoTheBlock reported trends in Bitcoin holders' balance metrics. Although long-term holders are selling, the scale of these sell-offs is moderate compared to previous bull cycles, where aggressive selling often indicated market peaks.
This restrained selling among long-term holders may reflect a cautious approach given current market conditions. IntoTheBlock speculates that this behavior could indicate a shift in cycle dynamics, potentially marking a new market phase for Bitcoin.
Featured image created with DALL-E, Chart from TradingView