Bitcoin has recently broken out of a 7-month descending broadening wedge pattern, signaling a potential surge over $70,000. According to crypto analyst Gert van Lagen, this breakout could mark the beginning of a major price continuation phase for Bitcoin.
Van Lagen emphasized the significance of Bitcoin's ability to retest the upper trendline successfully, which provides momentum to the bullish structure. This wedge pattern is typically a reversal signal, indicating a strong trend upon breakout, thus reinforcing the possibility of Bitcoin reaching new all-time highs soon.
The bullish movement has been validated as Bitcoin retested a bottom-sloping trendline, peaking above this line after reaching an all-time high of over $73,000 in March. A crucial level to watch is $58,700, which, if breached, may undermine the bullish trend.
Bitcoin currently trades at $71,150, having reached an intraday high of $71,450, thereby coming close to its all-time high. The Bitcoin open interest is at its peak, suggesting high trading activity and potential for continued bullish momentum in the short term.
Overall, the outlook remains positive as Bitcoin advances towards uncharted price territories, with multiple factors supporting the continuation of bullish momentum.
