As a seasoned researcher with extensive experience in following the cryptocurrency market trends, I have witnessed the volatile nature of Bitcoin’s price action numerous times. The recent 1.13% drop to $67400 is concerning for some investors, but given the three-week rally and the formation of a bull flag pattern, I believe this pullback is justified and could even provide an opportunity for a breakout past $80,000.
Bitcoin, the first cryptocurrency, experienced a 1.13% decrease over the past 24 hours, now trading at $67,400. Trump’s supportive stance on crypto at the Bitcoin 2024 conference has not prevented this sell-off, causing unease among investors regarding Bitcoin’s ability to maintain its upward trend. However, given the recent three-week price surge, a temporary dip during the weekend is expected as a means of rejuvenating the bullish market momentum that had grown weary.
Bitcoin Price Flag Formation Hints Breakout Opportunity past $80K
The Bitcoin price is exhibiting a sideways movement during the mid-term, with the emergence of a bull flag pattern. This configuration on the chart is characterized by two declining trendlines that serve to define the price’s path, acting as both dynamic resistance and support.
On the 5th of July, Bitcoin (BTC) underwent a bullish turnaround from its flag pattern, which was priced at $53,485. This shift propelled the digital currency up by approximately 29.75%, reaching an astounding peak of $69,400. The recent height of Bitcoin was influenced significantly by the optimistic market response to former President Donald Trump’s speech at the Bitcoin conference in Nashville on the weekend afternoon.
During his speech, Trump proposed several pro-cryptocurrency actions: He pledged to appoint a new SEC Chair, Gary Gensler’s successor, on his inauguration day, created a plan for establishing a national Bitcoin reserve if elected, guaranteed the US government’s possession of all its Bitcoin assets, and thwarted any efforts to launch a central bank digital currency (CBDC) throughout his presidency.
Under his management, Bitcoin and cryptocurrencies are expected to soar to unprecedented heights.
Despite Donald Trump’s positive predictions, the bitcoin price failed to hit $70,000 and now hovers around $67,400. Simultaneously, the total value of the Bitcoin market has dipped slightly to hover near $1.335 trillion.
Despite the recent pullback, Bitcoin’s price surge over the last three weeks justifies this move. The market sentiment has been greatly heightened, making it plausible for the weekend price action to rejuvenate the waned bullish momentum. As a result, the flag pattern at $70,130 could experience a breakout attempt.
If a breakthrough is achieved successfully, it will indicate the continuation of the upward trend for Bitcoin (BTC). Consequently, the projected price target may be raised to around $78,000, potentially increasing further up to $84,000.
As a crypto investor, I must acknowledge that if the resistance level at the trendline continues to put pressure on the supply side, there’s a strong likelihood that the asset price will experience corrective phases for an extended period, potentially spanning several weeks or even months.
Technical Indicator:
- Pivot Levels: The traditional pivot indicator hints the price pullback could witness immediate support at $64400, followed by a correction floor at $56700.
- Moving Average Convergence Divergence: A bullish crossover state between the MACD (blue) and signal (orange) assures the recovery momentum is intact.
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2024-07-28 16:05