- Bitcoin has been consistently forming lower highs over the past six months, indicating a bearish trend.
- The expanding triangle pattern suggests potential high volatility ahead, with the next major move either confirming the downtrend or signaling a reversal.
- Bitcoin must break $70K to start a bullish trend, with support at $53K and $49K.
- Analysts suggest Bitcoin could target $130K if it surpasses the $73K mark.
Triangles everywhere!
That’s what Peter Brandt sees when he looks at $BTC’s trading charts.
Brandt identifies a bearish pattern of lower highs in Bitcoin’s price action, suggesting continued downward pressure.
But a key breakthrough could change everything. Will it finally come?
Let’s dive in.
Lower Highs and Lower Lows
A triangle formation, such as the one Brandt showcased, highlights $BTC’s ongoing struggle to build steady upward momentum.
The cryptocurrency pushes up, falls back, rebounds, and repeats – but it settles a bit below its previous level each time.
The pattern characterizes the sideways action that has held steady since March’s $73K all-time high.
Brandt identified several key price points:
- $73K as the all-time high for $BTC in March 2024
- Key support #1 at $53K
- Key support #2 at $49K
Should $BTC slide below those supports, the general bearish trend would continue.
Concluding a Six-Month Cycle?
Brandt wasn’t all doom and gloom.
The expanding triangle formation often concludes after about six months. And Brandt highlighted another key support: the $70k high in July.
Reaching that mark would break the ‘lower highs’ trend, with the potential to send $BTC much, much higher.
The continued net inflows into $BTC ETFs are another positive sign.
How much higher could $BTC go?
Some analysts see $130K, with strong movement toward that mark by the end of the year.
Even discussions around $BTC’s movements (between veteran traders and crypto insiders) are starting to sound bullish.
Meanwhile, as more and more trading patterns turn positive, a sense of optimism is finally starting to shine as institutional investors start to jump in.
In other words, the question seems to be when, not if, the leading crypto will resume its upward march.
Conclusion: Eyes on the $70K Prize
Macroeconomic trends play a huge role here. However, the Fed’s rate cuts and news of growing economic investment from governments should spur $BTC into a normally positive season.
However, the expanding triangle formation on Bitcoin’s daily chart indicates increasing volatility, so keep a close eye on those support numbers.
And watch out for $70K.
References
Disclaimer: The opinions expressed in this article do not constitute financial advice. We encourage readers to conduct their own research and determine their own risk tolerance before making any financial decisions. Cryptocurrency is a highly volatile, high-risk asset class.
