Bitcoin price has shown good signs of recovery over the past seven days, returning above $58,000 by the end of the week. Interestingly, a prominent crypto analyst at X has identified a chart pattern that signals a potential continuation of this resurgence by the leading cryptocurrency.
Bitcoin Price Forms This Chart Pattern – What’s Next?
In a up-to-date post on Platform X, popular cryptocurrency analyst Ali Martinez common thrilling analysis of Bitcoin price over the next few days. According to the crypto expert, the flagship cryptocurrency appears to be at the critical point of a bullish breakout that could see its price reclaim past highs.
The basis of Martinez’s projection is the formation of an ascending triangle pattern on the four-hour Bitcoin price chart. An ascending triangle refers to a technical analysis pattern that is characterized by a horizontal line drawn along the swing highs and an ascending trendline drawn along the swing lows.
Typically, ascending triangles are referred to as continuation patterns because price often breaks out of the triangle in the dominant trend direction (uptrend or downtrend) in a triangle formation. However, this is not always the case with the chart pattern.
Martinez emphasized that if Bitcoin price successfully breaks above the horizontal triangle line that is set around the $59,200 resistance level, it could continue its rebound journey. According to the analyst, the leading cryptocurrency could reach $63,800.
At the time of writing, Bitcoin is trading at $59,431, having broken through the $59,200 level following the failed assassination attempt on former US President and vocal Bitcoin advocate Donald Trump. A sustained break above that level would make the $63,800 price prediction more likely than ever.
BTC weighted sentiment falls to lowest level since 2020
In another post on X, Martinez revealed that Bitcoin’s weighted sentiment has seen a pointed decline following the coin’s recent decline to $53,300. According to Santiment data, the weighted sentiment fell to -2 on July 5, the lowest level since the COVID-19 crisis in March 2020.
Negative sentiment is not a good sign for Bitcoin price, as it could signal further declines for the coin. While Bitcoin-weighted sentiment hit a multi-year low a little over a week ago, it is currently trending positive.
July 5, as #Bitcoin fell to $53,300 and the weighted sentiment fell to -2 — the lowest level since the Covid-19 crisis in March 2020! photo:twitter.com/6B4sLzsXP0
— Ali (@ali_charts) July 13, 2024
However, the indicator is still negative at around -0.47, taking into account Martinez’s entry from Saturday, July 13. This could mean a further decline in the price of the flagship cryptocurrency.
Featured image from iStock, chart from TradingView
