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Will the next Bitcoin be $ 58K? A’reversing rising triangle’like 2019 suggests a further rise in BTC

The sharp reversal of Bitcoin (BTC) prices from the otherwise bearish technical setting has increased the likelihood of reaching $ 58,000 in the second quarter.

Will Bitcoin prices bottom out?

In the daily time frame, Bitcoin broke out of the rising triangle on March 27, bringing the long-awaited $ 50,000 level within that range.

Interestingly, the upward triangle is a continuation pattern. In other words, when you are out of the tightening range, you usually solve it by sending the price in the direction of the previous trend.

Bitcoin, which had been on a downward trend before forming an ascending triangle, avoided further downwards and instead, instead It continued to rise by surpassing the upper horizontal trend line of the pattern by about $ 45,000 and reaching near the last claimed level of $ 47,700 on January 2, 2022.

This turned out to be one of the few cases where an ascending triangle appears at the end of the downtrend. For example, Bitcoin underwent a sharp upward retracement from $ 3,100 to $ 14,000 after drawing a similar triangular pattern as a veteran between December 2018 and April 2019.Market analyst Peter Brandt I got it March 28th.

Fractals increase the likelihood that Bitcoin will undergo a decisive breakout from the “reversing rising triangle” and price towards a level of length equal to the maximum distance between the upper horizontal trend line and the lower rising trend line of the triangle. Will rise. $ 58,000, as shown in the graph below.

BTC / USD Daily Price Chart Featuring Inverted Rising Triangle Setup Source: TradingView

Weekly time frame: Next is $ 69K?

Meanwhile, independent analysts expect to “ride the wave” and Bitcoin is expected to recover towards its current record of $ 69,000.

Analysts have released weekly forecasts of bullishness based on a wider rising triangle pattern, coupled with Bitcoin’s logarithmic support level.

Nonetheless, his setup also brought the possibility of Bitcoin crashing to less than $ 40,000 after being unable to break $ 69,000.

Why $ 52,500 is the most decisive level

Bitcoin’s rising triangle shows a very bullish outlook on both short and long timeframe charts, but given the significant weekly moving averages and Fibonacci retracement levels, there is an immediate downside risk. To do.

In particular, the continuous upward movement of Bitcoin occurred after repeated testing of the 100-week exponential moving average (100-week EMA, Blackwave) as a support.

Meanwhile, the 0.236 Fibonacci line (nearly $ 36,000) in the Fibonacci retracement graph was drawn from a high of $ 69,000 to a low of $ 26,000, serving as additional support. The $ 26,000 level matches the 200-week EMA (blue wave). ..

Interestingly, the rebound looked similar to the price behavior seen between November 2019 and January 2020. At that time, BTC’s price increase was exhausted when it reached 0.618 fibrin (nearly $ 10,500) in February 2020 and was revised for a 200-week EMA per month.

Related: Bitcoin sellers continue to curb BTC price action in a $ 45,000 “fake out” warning

If Bitcoin repeats the same move in 2022, the BTC / USD pair could reach the current 0.618 Fibonacci line near $ 52,500, but then revised towards a 200-week EMA near $ 26,000. increase. Conversely, the decisive movement above the Fibonacci level is the setting of an ascending triangle, as explained above.

The views and opinions expressed here are those of the author and do not necessarily reflect the views of Cointelegraph.com. All investment and transaction movements carry risks. When making a decision, you need to do your own research.