Bitcoin saw a fairly quick correction at the beginning of the week, bringing it back to the $40,000 level. This correction has understandably woken up some investors in the market, who rushed to panic sell to avoid further losses. Once sales started to decline, the cryptocurrency’s price has slowly but steadily recovered. Amid this, a crypto analyst has predicted that more gains could be coming for Bitcoin.
Bitcoin price could retest $69,000
Currently, $69,000 is the holy grail when it comes to price targets for Bitcoin, as it remains the all-time high for the asset. Although the price is only $40,000, it is important to note that it only takes a 70% move from this point for the price to reach a new all-time high.
On the topic of reclaiming this all-time highest price, crypto analyst Weslad turned to TradingView part their latest analysis of Bitcoin. According to Weslad, Bitcoin price could be preparing for a retest that could take it back to $69,000. This retest is confirmed by the appearance of a cup and handle pattern suggesting further upside for the price.
As the crypto analyst notes, Bitcoin completed a neckline breakout of a cup-and-handle pattern as it rose above $31,800 and continued to rise. This completed the cup and handle pattern and “now serves as immediate support and demand,” Weslad explains.
The completion of this pattern is also an important factor for an upcoming rally. This is because the pattern has yet to complete the breakout and has not yet reached its ultimate goal. As the chart shared by the analyst shows, the current correction is expected and the ultimate target for this pattern is somewhere around $69,000.
BTC price sitting at $41,200 | Source: BTCUSD on Tradingview.com
BTC price can go in one of two directions
While the possibility of a Bitcoin breakout remains high due to the completion of the cup-and-handle pattern, there is still more than one scenario that could play out from this point. Obviously, the two possible scenarios here are bullish or bearish.
Weslad presents two scenarios, the first of which is an upward rally. The analyst explains that this rally, marked as Scenario A, could be the result of continued support in the Handle’s target zone. In this case, there is resistance for the BTC price between $48,000 and $50,000.
We move on to the next scenario: Scenario B is that the bulls fail to overcome the expected resistance at $48,000 and $50,000. In such a case, the analyst suggests that Bitcoin price could correct further down, reaching as low as the Neckline at $31,000, which is currently acting as a critical support zone.
Featured image from Crypto News, chart from Tradingview.com
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