Bitcoin’s price is showing signs of a potential 25% increase, forming a bullish wedge pattern while lingering near its 2021 all-time highs. Crypto traders are optimistic, targeting a price of $85,000.
Bullish Pattern Signals Potential Breakout
According to pseudonymous crypto trader Jelle, Bitcoin has formed a massive descending broadening wedge around the previous cycle highs. This pattern is typically seen as a reversal signal, where Bitcoin’s price forms a sequence of lower highs and lower lows, with the gap widening as it falls. The expectation is for an upward trend reversal.
Jelle shared in a July 26 post on X (formerly Twitter), “Price looks eager for a breakout — and once it does, I expect the move to be sharp. First target, $85,000.” This target is approximately 15% above Bitcoin’s current all-time high of $73,679, reached in March.
Bitcoin is currently trading at $67,908, up 2.61% since July 26, according to CryptoMeter data. A move to $85,000 would represent around a 25% price increase, a surge reminiscent of July 21, when Bitcoin bounced back from dropping below critical levels, recovering from $55,854 to $68,181.
Critical Levels and Market Reactions
The next critical level for Bitcoin traders is reaching $69,000, its previous all-time high from November 2021. Achieving this milestone would wipe out $929.65 million in short positions.
“We are still in a larger range and it is best to assume we can find resistance the closer we get to $72,000 level,” added another pseudonymous crypto trader, Emperor.
Influential Factors and Market Sentiment
The speculation follows Bitcoin’s recovery from its losses since July 25, as traders eagerly await former United States President Donald Trump’s appearance at the Bitcoin 2024 conference in Nashville, Tennessee.
“Nobody wants to short Bitcoin into the weekend,” wrote 10x Research CEO Markus Thielen in a July 25 analyst note. Thielen explained that there are high expectations for Trump to announce plans for a strategic Bitcoin reserve at the conference on July 27, should he be elected US president in November.
Thielen believes future traders are holding off on taking short positions on Bitcoin due to fears that its price may surge following Trump’s potential announcement.
