The Bitcoin price has shown good signs of recovery over the past seven days, returning above $58,000 to finish the week. Interestingly, a distinguished crypto analyst on X has identified a chart formation signaling a possible continuation of this resurgence by the premier cryptocurrency.
Bitcoin Price Prints This Chart Pattern — What Next?
In a recent post on the X platform, popular crypto analyst Ali Martinez shared an exciting evaluation for the Bitcoin price over the following few days. In keeping with the crypto pundit, the flagship cryptocurrency appears to be at a critical point for a bullish breakout that would see its price reclaim former highs.
The rationale behind Martinez’s projection is the formation of an ascending triangle pattern on the Bitcoin four-hour price chart. An ascending triangle refers to a technical evaluation pattern that incorporates a horizontal line drawn along swing highs and a rising trendline drawn along swing lows.
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Typically, ascending triangles are known as continuation patterns, as price often breaks out of the triangle within the prevalent trend direction (uptrend or downtrend) within the triangle formation. Nonetheless, this will not be all the time the case with the chart pattern.
Source: Ali_charts/X
Martinez highlighted that if the Bitcoin price successfully breaks above the triangle’s horizontal line, which is about across the $59,200 resistance level, it could proceed its recovery journey. In keeping with the analyst, the premier cryptocurrency could rally as high because the $63,800 mark.
As of this writing, the worth of Bitcoin stands at $59,431, breaking above the $59,200 following the failed assassination attempt on United States former President and vocal Bitcoin supporter Donald Trump. A sustained break above this level would make the $63,800 price projection more likely than ever.
BTC Weighted Sentiment Falls To Lowest Level Since 2020
In one other post on X, Martinez revealed that Bitcoin’s weighted sentiment witnessed a plunge following the coin’s recent decline to $53,300. In keeping with data from Santiment, the weighted sentiment fell to -2 on July 5, its lowest level for the reason that COVID-19 crash in March 2020.
A negative sentiment will not be exactly a very good sign for the Bitcoin price, because it might be a signal of further downside for the coin. Although the Bitcoin weighted sentiment hit a multi-year low slightly over every week ago, it’s currently moving towards the positive side.
On July 5, as #Bitcoin fell to $53,300, the weighted sentiment plummeted to -2 — the bottom level for the reason that Covid-19 crash in March 2020! pic.twitter.com/6B4sLzsXP0
— Ali (@ali_charts) July 13, 2024
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Nonetheless, the metric remains to be negative at around -0.47 based on Martinez’s post on Saturday, July 13. This might imply further downside for the worth of flagship cryptocurrency.
Bitcoin price breaks above the $59,500 mark on the every day timeframe | Source: BTCUSDT chart on TradingView
Featured image from iStock, chart from TradingView