The recent correction in the Bitcoin market, which brought the price back to $40,000, has caused some investors to panic sell in an attempt to avoid further losses. However, with the selling pressure subsiding, the cryptocurrency has been slowly recovering. Despite the current price sitting at $40,000, there is a prediction by one crypto analyst that Bitcoin could experience further upside. The key price target for Bitcoin is $69,000, representing its all-time high. It is noteworthy that a move of just 70% from the current price level would be required to reach a new all-time high.
In a recent analysis shared on TradingView, crypto analyst Weslad highlights the possibility of Bitcoin going through a retest that could push its price back up to $69,000. This retest is supported by the emergence of a cup and handle pattern, which indicates a potential upward move. Weslad emphasizes that Bitcoin completed a neckline breakout of the cup and handle pattern when it surged above $31,800 and continued to rise. The completion of this pattern establishes immediate support and demand for Bitcoin. It also suggests that the breakout has not fully completed and that the final target for the pattern is around $69,000.
While the completion of the cup and handle pattern suggests the possibility of a Bitcoin breakout, there are still multiple scenarios that could unfold. The analyst presents two main scenarios: Scenario A, a bullish rally, and Scenario B, a potential further correction.
In Scenario A, the sustained support at the handle’s target zone could trigger an upward rally for Bitcoin. However, there is resistance between $48,000 and $50,000 that needs to be overcome. If successful, Bitcoin could continue its upward momentum.
On the other hand, Scenario B envisions the bulls failing to surpass the expected resistance at $48,000 and $50,000. In this case, the Bitcoin price might correct further, potentially dropping as low as the neckline support at $31,000. The neckline currently acts as a critical support level.
It is important to note that investing in cryptocurrencies carries inherent risks. The opinions and predictions presented by analysts should be taken as educational information and not as investment advice. Conducting thorough research and making informed decisions are crucial when investing in any asset, including Bitcoin.
While Bitcoin is currently experiencing a slow but steady recovery from its recent correction, there is potential for further upside. The cup and handle pattern suggests the possibility of a retest of $69,000. However, there are still multiple scenarios that could play out, with both bullish and bearish possibilities. Investors should exercise caution and conduct their own research before making any investment decisions.
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