Crypto analysts are pointing to some potentially bullish action in the Bitcoin charts that could see the flagship cryptocurrency challenge its recent all-time high.
Following an explosive rebound over the weekend to almost $59,000, Bitcoin was pulled back down towards $56,000 this morning.
However, by the time US markets opened this afternoon and digested the news that India would not be looking to enforce restrictions on digital assets, Bitcoin returned to an upward flightpath that saw it rise steadily towards an altitude approaching $59,000.
Ahead of the lift from India’s declaration of education and regulation instead of restriction, one observer reported an interesting pattern forming in Bitcoin’s recent price action – a ‘falling wedge’ – which is historically bullish and carries a higher probability of breaking to the upside.
“If the down trending line of resistance is broken, Bitcoin may be on its way to retest the all-time-high as the technical target is around that region,” confirmed GlobalBlock sales trader Marcus Sotiriou.
“The weekend’s rebound was mainly driven by the spot market and not by leverage which is promising for Bitcoin bulls as it suggests the market is in a healthy condition.”
In addition, on-chain metrics continue to show accumulation as the total Bitcoin supply held by entities with one to 10 Bitcoin hit a new all-time-high this week.
“Historically, this has resulted in an upwards trajectory for Bitcoin’s price for the following few months,” Mr Sotiriou added.
His observations were echoed by 8848 Invest co-founder Nikita Rudenia who firmly believes the portents show Bitcoin could top $70,000 before the year is out.
“Bitcoin’s recent plunge to its seven-week low of $53,569 was largely stirred by the uncertainties in the broader economic world with respect to the ravaging Omicron variant of the COVID-19,” he explained.
“Much like the reactions from major global market indicators, Bitcoin’s fall was a reflection of investors stepping back to assess the situation while deciphering the next best course of action.
As Bitcoin looked to open its December account close to $60,000, Rudenia thinks investors are optimistic that the cryptocurrency will repeat its historic trend of ending the year on a bullish note.
“Despite the obvious setbacks thus far, Bitcoin is still on track to close the year at $70,000 per coin and, should this feat be achieved, we may see the coin touch $75,000 in early 2022 before we get a major correction”.