At the beginning of the week, Bitcoin experienced a fairly quick correction that took it back to the $40,000 mark. This correction understandably shocked some investors in the market, who resorted to panic selling to avoid further losses. As the selling subsided, the price of the cryptocurrency recovered slowly but steadily. With this in mind, one crypto analyst has predicted that there could be further upside potential for Bitcoin.
Bitcoin price could retest the $69,000 mark
Currently, $69,000 is the holy grail when it comes to price targets for Bitcoin, as this remains the asset's all-time high price. Although the price is only at $40,000, it is important to note that from here it only takes another 70% move for the price to reach a new all-time high.
On the topic of reclaiming that all-time high, crypto analyst Weslad used TradingView to share his latest analysis of Bitcoin. According to Weslad, Bitcoin price could be preparing for a retest that could take it back to $69,000. This retest is confirmed by the appearance of a cup and handle pattern, indicating further price increases.
As the crypto analyst points out, Bitcoin completed a breakout from a cup-and-handle pattern as it rose above $31,800 and continued to rise. This completed the cup and handle pattern and “now serves as immediate support and demand,” Weslad explained.
Completing this pattern is also an important factor for an upcoming rally. This is because the pattern has not yet completed the breakout and has not yet reached its final destination. As the chart shared by the analyst shows, the current correction is expected and the final target for this pattern is around $69,000.
BTC price is $41,200 | Source: BTCUSD on Tradingview.com
BTC price could go in one of two directions
Although the possibility of a Bitcoin breakout remains high due to the completion of the cup and handle pattern, there is still more than one scenario that could play out from here. Of course, the two possible scenarios here are either bullish or bearish.
Weslad presents two scenarios, the first being an upward rally. The analyst explains that this rally, dubbed Scenario A, could be the result of continued support in the handle's target zone. In this case, the resistance for BTC price lies between $48,000 and $50,000.
Now let's move on to the next scenario: Scenario B is that the bulls fail to overcome the expected resistance at $48,000 and $50,000. In such a case, the analyst suspects that Bitcoin price could correct further downwards and fall to the bottom of the neckline at $31,000, which is currently acting as a critical support zone.
Featured image from Crypto News, chart from Tradingview.com
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