After recently bouncing off a set $74,000 floor, Bitcoin’s triggered a cascading bullish rush. At the moment, analysts are forecasting a major breakout up to $110,000 by the end of summer. Ever since the correction in mid-April, the crypto has been making higher lows. It’s the third month in a row that signals buyers are finally regaining control of this frenzied market. A falling wedge breakout is in progress on the 3-day chart, a technical formation typically found at the end of downtrends leading to powerful bullish reversals.
Bitcoin put in a hard bounce in reaction to the breach after having briefly dipped enough to graze the $74,000 zone. The positive price action combined with positive cumulative advance/decline action underneath the roof indicates a bullish structure is in development. Even with favorable market conditions, the cryptocurrency has stormy seas ahead.
BTC USD daily chart Bitcoin is now breaking out against a significant descending trendline that has served as Bitcoin resistance ever since its all-time high. A strong break above this purple downtrend line would likely set off a major upside breakout.
Volume Profile reveals a big area of resistance near the $97,000 POC. This area of resistance is an important level for Bitcoin to overcome if it wants to continue its bull run. Assuming Bitcoin’s price is able to hold consistently above the $97K resistance zone, a rally towards $110K by late summer looks more and more likely.
The ambitious long-term goal for this rally is approximately $109,000. A period of consolidation between $78,000 and $88,000 seems likely in the coming weeks, as Bitcoin gathers momentum for its next leg up.
If you’ve ever been on the crypto market’s emotional rollercoaster, you know how mighty the mood swings are. Market participants were predicting a fall toward $50,000 just days ago, and now many are turning back bullish. This change in tone only further highlights the fickle and uncertain nature of the crypto space.
Bitcoin’s breakout from the falling wedge pattern has the potential to ignite a bullish rally in the coming weeks. If the recent price action is any indication, the foundation for a possible summer rally has already been set.
