Bitcoin Forms ‘Major’ Bullish Wedge Pattern as Trader Sets Sights on $85K
Bitcoin’s bullish pattern on the chart is signaling to crypto traders a potential 25% price increase from its current level.
Bitcoin Creates ‘Major’ Bullish Wedge Pattern with Traders Eyeing $85K Target
Bitcoin Forms ‘Major’ Bullish Wedge Pattern as Trader Sets Sights on $85K Bitcoin is currently forming a significant bullish wedge pattern as it hovers near its 2021 all-time highs, with traders hopeful for a potential price surge to $85,000.
On July 26, pseudonymous crypto trader Jelle highlighted the pattern in a post on X, describing Bitcoin’s formation of a “massive descending broadening wedge” around its previous cycle highs. This pattern is typically considered a reversal indicator, where Bitcoin’s price shows a series of lower highs and lower lows, with the gap widening as it descends, ultimately signaling a possible upward trend reversal. Jelle anticipates a sharp breakout, projecting an initial target of $85,000, which is approximately 15% above Bitcoin’s current all-time high of $73,679 reached in March.
As of now, Bitcoin is trading at $67,908, reflecting a 2.61% increase since July 26, according to CoinMarketCap. A move to $85,000 would represent a 25% increase from its recent value, echoing the rebound seen on July 21 when Bitcoin recovered from a dip below critical levels, rising from $55,854 back to $68,181.
The next pivotal level for Bitcoin traders is $69,000, its previous all-time high from November 2021. Reaching this level could trigger a liquidation of approximately $929.65 million in short positions, based on CoinGlass data. “We are still in a larger range, and it is best to assume we might face resistance as we approach the $72,000 mark,” noted pseudonymous trader Emperor.
The anticipation around Bitcoin’s price movements is heightened by recent reports and speculation. Cointelegraph noted Bitcoin’s recovery from losses since July 25, with traders awaiting former U.S. President Donald Trump’s appearance at the Bitcoin 2024 conference in Nashville, Tennessee. There is speculation that Trump might announce plans for a strategic Bitcoin reserve, which could significantly impact Bitcoin’s price if he is re-elected.
10x Research CEO Markus Thielen observed on July 25 that traders are reluctant to short Bitcoin into the weekend, anticipating that a potential announcement from Trump could drive the price higher. Thielen suggested that if Trump does propose a strategic reserve, Bitcoin could experience a substantial price gap upwards.
