Bitcoin Correction and Slow Recovery
Bitcoin experienced a rapid correction at the beginning of the week, causing the price to drop back to $40,000. This correction led to panic selling among some investors who wanted to avoid further losses. However, once the selling pressure subsided, the cryptocurrency started a slow but steady recovery.
Bitcoin Price Potential to Retest $69,000
$69,000 is considered a significant price target for Bitcoin as it represents the asset’s all-time high. Although the current price is only at $40,000, it would only take a 70% increase from here for Bitcoin to reach a new all-time high.
Crypto analyst Weslad recently shared their analysis on TradingView, suggesting that Bitcoin might be preparing for a retest that could push its price back to $69,000. This prediction is based on the observation of a cup and handle pattern, which indicates further upside potential.
Cup and Handle Pattern Breakout
According to Weslad, Bitcoin completed a neckline breakout of a cup and handle pattern when it surpassed $31,800 and continued to rise. This breakout confirmed the completion of the cup and handle pattern and established it as immediate support and demand for Bitcoin.
The completion of this pattern also indicates the possibility of an upcoming rally. The breakout has not yet reached its final target, which is projected to be around $69,000 according to Weslad’s chart.
Possible Scenarios
While the chances of a Bitcoin breakout remain high due to the cup and handle pattern completion, there are two possible scenarios that could unfold. Scenario A involves an upward rally supported by sustained demand in the Handle’s target zone. However, there is resistance between $48,000 and $50,000 that needs to be overcome.
On the other hand, Scenario B suggests that if the bulls fail to surpass the expected resistance levels, Bitcoin’s price could further correct downwards. The critical support zone in this case would be at $31,000, which is the Neckline of the cup and handle pattern.
Hot Take: Bitcoin’s Potential Upside
The recent correction in Bitcoin’s price has caused some concern among investors. However, crypto analyst Weslad believes that there is still potential for upside in Bitcoin’s price. Their analysis suggests that Bitcoin could retest its all-time high of $69,000 based on the completion of a cup and handle pattern. This pattern has served as immediate support and demand for Bitcoin, indicating further potential for a rally. While there are two possible scenarios, one involving an upward rally and another with a downward correction, it remains to be seen how Bitcoin will perform in the coming weeks.
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