In brief:
- Bitcoin is once again attempting to break the crucial psychological price of $10,000.
- Top Bitcoin analyst sees the possibility of BTC breaking this level and others on its way to $17,200.
- However, BTC has to first prove itself by breaking several resistances.
Another week is upon us and Bitcoin is once again attempting to gather fresh momentum to break the crucial psychological price of $10,000. This area is the same price zone the King of Crypto attempted to claim on the 8th of May before this year’s Bitcoin halving event.
After the halving, BTC fell hard to $8,100 and began another slow climb to $9,950 where its upward movement was rejected a second time. At the time of writing this, BTC is once again attempting another climb to this level and is valued at $9,800 (Binance rate).
Top BTC Analyst Suggests Bitcoin Could Retest $17,200
In his recent analysis of Bitcoin, MagicPoopCannon explained a scenario where Bitcoin could retest its 2018 peak of $17,200. In the highly informative post on TradingView.com, Magic explained that Bitcoin has been in a descending broadening wedge since mid-2019. If the wedge breaks out to the upside, we could see a scenario where Bitcoin could overcome several resistance levels all the way to $17,200. He further explained the situation as follows.
Either way, all we can do is wait to see if [the broadening wedge] actually produces an upside breakout.
To find the price target for a descending broadening wedge, traders will generally take a measurement of the widest part of the formation, and add it to the breakout point.
I’ve done that with the dashed vertical pink trendlines. You can see that it actually projects a price target around the 17200 level, which is right near the high of January 2018.
So, if BTC can print a solid breakout here, and get above 10600, I think there is a very good chance that it will take out the 14000 level, and rally all the way up to the projected target of 17200.
Several Resistances Ahead for Bitcoin
Magic, however, stressed the importance of understanding the intense resistance levels Bitcoin is facing. One such resistance is the black trend line seen in the above screenshot of his analysis. The trendline which has its genesis in December of 2017, could provide the biggest hurdle for BTC.
He explained:
Here on the daily BTC chart, we can see that it’s currently contending with massive resistance. That resistance has been generated by a convergence of a two-and-a-half-year-old falling trendline (in black) and the 38.2% retracement level of the 2018 bear market (in red).
(Feature image courtesy of Unsplash.)