Cryptocurrency analyst said that the current PA of BTC has laid the foundation for a 30% Rebound
During the 2024 US presidential election, the recent PA of BTC has led to its price currently at about $69,092, down from last week's level of below $70,000. This relatively low volatility marks a period of calm for BTC, keeping it stable in the range of $68,000 to $69,000 over the past few days.
Stable price trends have prompted analysts to predict a possible pump trend and point out that various technical patterns and indicators all indicate a potential Rebound.
Among the analysts predicting the bullish trend of BTC, a well-known cryptocurrency analyst named Captain Faibik recently shared insights on X, which involves a technical pattern called 'Descending Broadening Wedge'.
Faibik emphasizes that BTC has broken this pattern on the weekly chart and is currently in the "retest" stage. In Technical Analysis, the descending broadening wedge is often seen as a bullish reversal pattern. This pattern forms when price action creates lower highs and lower lows within diverging trendlines, indicating a potential weakening of the downward momentum.
If the price breaks the resistance level, it indicates that the price of the asset may soar. Faibik expects BTC to successfully retest this pattern in the near future and has set a medium-term target of 88,000 US dollars, predicting that the value of BTC may pump 30% by the end of this year.
In addition to Faibik's observations, another well-known analyst, Javon Marks, also pointed out signs of bullish divergence on the BTC chart.
In Technical Analysis, when the asset price reaches a lower low while the technical indicator (such as the Relative Strength Index (RSI)) reaches a higher low, a bullish divergence occurs. As buying momentum begins to strengthen, this divergence may indicate a potential reversal.
Marks believes that this divergence suggests that BTC long positions may be preparing for action, which could mean they are regaining market dominance. Even though the short-term market conditions appear uncertain, Marks' view also supports the possibility of a mid-term pump trend.
Meanwhile, the well-known blockchain analysis company recently reported an interesting trend in the BTCholder balance indicator. According to their data, although long-term holders of BTC are currently dumping, the scale of dumping seems to be milder compared to previous Bull Market cycles. In previous cycles, long-term holders would usually dump more actively, indicating that market sentiment had reached its peak.
However, this time, the long-term holder's dumping trend is more restrained, which may reflect a cautious attitude taken in the current market conditions of BTC. It is speculated that this cautious behavior may herald a shift in the cyclical dynamics, potentially signaling a new market phase for BTC.
(Data Source: Samuel Edyme)
