Bitcoin is currently showing signs of a bullish wedge pattern as it hovers near its highest point of the year. Traders are optimistic about a potential target price of $85,000 in the near future.
According to a pseudonymous crypto trader named Jelle, Bitcoin has formed a descending broadening wedge pattern around its previous cycle highs. This pattern is typically viewed as a reversal signal, indicating that the price of Bitcoin will start to increase after a sequence of lower highs and lower lows.
Jelle also stated that the price of Bitcoin appears to be ready for a breakout, and once it happens, they expect the movement to be significant. Their first target price is set at $85,000, which is approximately 15% higher than Bitcoin’s current all-time high of $73,679 reached in March.
As of July 26, Bitcoin is trading at $67,908, reflecting a 2.61% increase since that date, according to CoinMarketCap data.
A price increase to $85,000 would mean a 25% jump in Bitcoin’s value. A similar spike occurred on July 21 when Bitcoin recovered from dropping below critical levels and climbed back up from $55,854 to $68,181.
The next important level for Bitcoin traders to watch is $69,000, which was its previous all-time high in November 2021. CoinGlass data suggests that reaching this level would result in a loss of $929.65 million for short positions.
Another pseudonymous crypto trader called Emperor stated that despite the positive outlook, it is wise to consider possible resistance near the $72,000 level, as Bitcoin is still within a larger range.
These speculations arise following a recent report that Bitcoin has regained most of its losses since July 25. Traders are eagerly waiting to see the impact of former US President Donald Trump’s appearance at the Bitcoin 2024 conference in Nashville, Tennessee.
According to Markus Thielen, CEO of 10x Research, traders are reluctant to short Bitcoin before the weekend, as there are high expectations that Trump will announce plans for a strategic Bitcoin reserve if he is elected US president in November.
Thielen believes that traders fear a potential surge in Bitcoin’s price if Trump were to make such an announcement, hence the hesitation to take short positions.
In an interview, Thielen expressed his belief that if Trump were to announce a strategic reserve, Bitcoin’s price would experience a significant increase.
In conclusion, the cryptocurrency community is eagerly watching Bitcoin’s price movements as it forms a bullish wedge pattern near its all-time highs. Traders are hopeful for a price target of $85,000, and the anticipation intensifies ahead of Donald Trump’s appearance at the Bitcoin 2024 conference.