The Bitcoin price action was marked by ups and downs in the just concluded week, serving as a reminder of the volatile nature of the digital asset. According to price data, Bitcoin has just completed a retest of the downward sloping trendline that has limited its price rallies since March.
As analyst EGRAG CRYPTO pointed out, the only thing left is for a complete body closure on the weekly timeframe. This closure will be pivotal in determining the next phase of Bitcoin’s price action, potentially setting the stage for a rally into new price territories.
Bitcoin Completes Trendline Retest
Technical analysis of the Bitcoin price indicates a breakout from a resistance trendline in the middle of October. Although this breakout saw the crypto breaking above $68,000 for the first time in three months, a consolidation shortly after suggested the work wasn’t done yet.
However, Bitcoin started the just concluded week on a good form. Particularly, BTC rallied in the last three days of October from $66,900 on October 27 until it reached $73,540 on October 29. This represented an increase of about 10% in just two days. Interestingly, this was enough to complete a successful breakout of this resistance trendline.
According to EGRAG CRYPTO, Bitcoin has successfully broken out and confirmed a retest phase. However, the breakout noted by the analyst is in a larger timeframe on the weekly candlestick chart. Looking at the Bitcoin price chart below, the initial breakout noted by EGRAG CRYPTO goes as far back as February 2024, when the top coin broke out above $47,000.
What this means is that when looking at the weekly timeframe, Bitcoin’s journey to the peak/all-time high of $73,737 on March 14, the correction up until a low of $49,800 on August 5, and the recent return above $73,000 are all part of one large breakout and retest move that has played out for the last 38 weeks.
What’s Next For Bitcoin?
This sequence of price movements paints a picture of Bitcoin’s resilience and a prevalent bullish sentiment among traders. According to EGRAG, the pattern is super bullish and he expects the crypto to continue on this run. In terms of a price target, the analyst suggested a potential rise to the $90,000 to the $110,000 range by December 2024. This represents 32% and 62% returns, respectively, from the $68,000 breakout. Interestingly, EGRAG also noted that the only thing left to certify this run is for the price to close the week in a green zone.
At the time of writing, Bitcoin is trading at $68,500, down by about 1.9% in the past 24 hours. This minor pullback, however, does not seem to deter the overall bullish sentiment surrounding Bitcoin at the moment.
Featured image from CNBC, chart from TradingView