The recent price movement of Bitcoin has shown signs of recovery, as the premier cryptocurrency climbed above $58,000 over the past week. A notable crypto analyst, Ali Martinez, has pointed out an interesting chart formation that indicates a potential continuation of this resurgence. According to Martinez’s analysis on the X platform, Bitcoin seems to be at a critical juncture for a bullish breakout that could lead to reclaiming former highs.
Martinez highlighted the formation of an ascending triangle pattern on the Bitcoin four-hour price chart as the basis for his projection. An ascending triangle is a technical analysis pattern characterized by a horizontal line along swing highs and a rising trendline along swing lows. Typically, ascending triangles are seen as continuation patterns, with price breaking out in the direction of the prevailing trend. However, this is not always the case.
If Bitcoin manages to break above the horizontal line of the triangle, set around the $59,200 resistance level, Martinez believes that the cryptocurrency could continue its upward journey. The analyst suggests that Bitcoin could rally as high as $63,800. Currently, the price of Bitcoin sits at $59,431, surpassing the $59,200 level following recent events involving former US President Donald Trump.
In another analysis by Martinez on X, the weighted sentiment for Bitcoin experienced a decline after the coin’s drop to $53,300. Based on data from Santiment, the weighted sentiment fell to -2 on July 5, its lowest level since the COVID-19 crash in March 2020. A negative sentiment could indicate potential further downward movement for Bitcoin.
Although Bitcoin’s weighted sentiment recently hit a multi-year low, it is now trending towards the positive side. As of Martinez’s post on July 13, the sentiment metric is around -0.47. This lingering negativity in sentiment could suggest the possibility of more downside for the price of Bitcoin in the near future.
Overall, while the analysis by Ali Martinez presents a bullish case for Bitcoin’s price movement in the short term, it is essential to consider the potential risks involved in cryptocurrency trading. Market sentiment, technical analysis patterns, and external factors can all influence the price of Bitcoin, making it a volatile and high-risk asset. Investors should exercise caution and conduct thorough research before making any trading decisions in the cryptocurrency market.