Bitcoin experienced a sudden correction at the beginning of the week, causing some investors to panic sell and avoid further losses. However, after the initial selling frenzy subsided, the cryptocurrency has been gradually recovering. In light of this, a crypto analyst has made a prediction that Bitcoin may have more upside potential. Currently, the coveted price target for Bitcoin is $69,000, which represents its all-time high. Despite the current price being at $40,000, it is worth noting that a 70% increase from here would propel Bitcoin to a new all-time high.
One popular crypto analyst, known as Weslad, shared their analysis on TradingView, suggesting that Bitcoin could be gearing up for a retest that may push its price back to $69,000. Weslad identifies the presence of a cup and handle pattern as evidence for a potential upward move in price. The cup and handle pattern refers to a technical formation on a price chart that usually indicates a continuation of the previous trend. In this case, the completion of the neckline breakout of the cup and handle pattern when Bitcoin surpassed $31,800 suggests that the pattern is “now serving as immediate support and demand.”
Moreover, the completion of the cup and handle pattern is a significant factor that supports the possibility of an upcoming rally. According to the chart shared by Weslad, the ongoing correction is expected, and the final target for this pattern is around $69,000. Therefore, if Bitcoin continues to follow this pattern, it could potentially reach a new all-time high.
While the completion of the cup and handle pattern increases the likelihood of a Bitcoin breakout, there are still multiple scenarios that could unfold. Weslad presents two possible scenarios, each with different outcomes.
Scenario A: Upward Rally
In the first scenario, Weslad predicts that Bitcoin may experience an upward rally. This scenario, marked as Scenario A, relies on the sustained support at the Handle’s target zone. Within this scenario, there is expected resistance for Bitcoin’s price between $48,000 and $50,000. If the bulls can overcome this resistance, it could propel Bitcoin to higher levels.
Scenario B: Further Correction
The second scenario, Scenario B, suggests that if the bulls fail to overcome the expected resistance at $48,000 and $50,000, Bitcoin’s price could undergo a further correction. In this case, the analyst indicates that Bitcoin may drop as low as the Neckline at $31,000, which currently serves as a critical support zone.
Bitcoin is currently undergoing a recovery phase after a recent correction. As highlighted by crypto analyst Weslad, the completion of the cup and handle pattern suggests that Bitcoin could experience a retest and potentially reach a new all-time high around $69,000. However, it is crucial to consider the various scenarios that could unfold, including an upward rally or a further correction. As with any investment, conducting thorough research and being aware of the risks is essential before making any investment decisions.