Bitcoin poised for Major Uptrend Breakout
Bitcoin is showing signs of a potential breakout from its long-term downtrend. The price has surged from $74,773 to nearly $84,000,according to CoinGecko.
Crypto analyst Rekt Capital believes bitcoin is close to confirming a notable uptrend. He tweeted that the cryptocurrency is “hours away from taking the first crucial steps towards a breakout.”
When Bitcoin breaks a downtrend, it usually signals the start of a new uptrend. This is good news for investors, as it could lead to higher prices.
Despite a 22.3% drop from its all-time high of $108,786, on-chain data shows strong buying activity at key price levels. Over 40,000 Bitcoin was accumulated at $79,000, according to Glassnode.
- 40,000 BTC bought at $79,000
- 51,000 BTC accumulated at $82,080
- 48,500 BTC in accumulation at $83,500
Analyst Merlijn The Trader sees additional bullish signs. He noted that Bitcoin has broken out of a falling wedge pattern, with a bullish divergence forming on momentum indicators. This could lead to a price target of $102,000.
“This is how trends begin,” Merlijn stated.”Buckle up.”
The falling wedge pattern is a bullish reversal formation. When the price breaks above the upper trend line, it frequently enough signals a shift towards buying momentum.
Bitcoin’s volatility in recent months has been influenced by macroeconomic factors. Though, the accumulation patterns suggest that both institutional adn retail investors see price dips as buying opportunities.
If Bitcoin confirms the breakout, the next major resistances would likely be at $90,000 and $100,000.
