Bitcoin’s price is currently near its all-time highs for 2021 and is showing signs of forming a bullish wedge pattern. This pattern, known as a descending broadening wedge, is seen as a reversal pattern where the price of Bitcoin experiences lower highs and lower lows, with the gap widening as it falls. However, traders are hopeful that this pattern indicates an upcoming upward trend reversal.
According to a pseudonymous crypto trader named Jelle, the price of Bitcoin appears ready for a breakout, and they expect the move to be sharp. Their price target is set at $85,000, which is approximately 15% higher than Bitcoin’s current all-time high of $73,679 in March.
As of July 26, Bitcoin is trading at $67,908, showing a 2.61% increase since then, according to data from CoinMarketCap. If Bitcoin were to reach the $85,000 price target, it would represent a 25% price increase. A similar spike was observed on July 21 when Bitcoin recovered from dropping below critical levels and surged back to $68,181 from $55,854.
The next significant level for Bitcoin traders to watch is $69,000, which was its previous all-time high reached in November 2021. CoinGlass data suggests that reaching this level would wipe out $929.65 million in short positions.
A pseudonymous crypto trader named Emperor warns that resistance may be encountered as Bitcoin approaches the $72,000 level, as the market is still within a larger range.
The speculation surrounding Bitcoin’s price increase coincides with the Bitcoin 2024 conference in Nashville, Tennessee, where former US President Donald Trump is scheduled to speak. Traders are eagerly waiting to see if Trump announces plans for a strategic Bitcoin reserve, should he be elected US president in November.
Markus Thielen, the CEO of 10x Research, believes that traders are hesitant to short Bitcoin because they fear a potential surge in price if Trump announces a strategic reserve. Thielen stated that if such an announcement were made, Bitcoin’s price would gap higher.
In conclusion, Bitcoin’s price is showing signs of a bullish wedge pattern, and traders are hopeful for an upward trend reversal. The target price of $85,000 is being eyed, and the market is eagerly awaiting the Bitcoin 2024 conference to see if Trump announces plans for a strategic Bitcoin reserve.