Bitcoin to $58K next? A 2019-like 'reversal ascending triangle' hints at more upside for BTC
A sharp reversal in the price of Bitcoin (BTC) out of an otherwise bearish technical setup has raised its chances of reaching $58,000 in Q2.
On the daily timeframe, Bitcoin broke out of its ascending triangle on March 27 to the upside, bringing the much-anticipated level of $50,000 within its range.
Interestingly, ascending triangles are continuation patterns, meaning they typically resolve by sending the price in the direction of its previous trend once it breaks out of their tightening range.
Bitcoin, which was trending downwards before forming an ascending triangle, avoided further downside. Instead, it managed to break above the pattern's upper horizontal trendline around $45,000, and followed the move upwards by hitting almost $47,700, a level last claimed on Jan. 2, 2022.
This turned out to be among the few cases wherein ascending triangles emerge at the end of a downtrend. For instance, Bitcoin underwent a sharp upside retracement — from $3,100 to $14,000 — after painting a similar triangle pattern between December 2018 and April 2019, as veteran market analyst Peter Brandt noted on March 28.
The $BTC pattern is called an ascending triangle (right). Read about Asc Tris in Schabacker, Study III, pgs 93-Also, compare present pattern to similar structure in 2019 (left) #Bitcoin pic.twitter.com/IyB2j7f8F6
The fractal raises Bitcoin's potential to undergo a decisive breakout out of its "reversal ascending triangle," for an extended price rally toward the level that is at a length equal to the maximum distance between the triangle's upper horizontal and lower rising trendline, i.e. around $58,000, as shown in the chart below.
Independent analyst "dave the wave" meanwhile anticipates Bitcoin to rally toward its current record
Read more on cointelegraph.com
